Stablecoins would help US keep up with China: Former House speaker

United States dollar-pegged stablecoins could alleviate the government’s debt crisis and help the country's dollar keep up with , which has been flexing its muscle in international trade, says a former House speaker. “The U.S. is headed toward a predictable yet avoidable debt crisis,” and dollar-backed stablecoins are “one answer” to keep the dollar attractive, argued Paul D. Ryan in a June 13 Wall Street Journal opinion piece.Ryan served as the 54th speaker of the U.S. House of Representatives from 2015-2019. The speaker of the House is considered one of the most powerful positions in American politics with an ability to shape the legislative agenda. “There would be an immediate, durable increase in demand for U.S. debt, which would reduce the risk of a failed debt auction and an attendant crisis,” said Ryan, who now serves as a policy council member at cryptocurrency-focused venture capital firm Paradigm.

The $162 billion stablecoin market already provides a huge source of demand for U.S. Treasurys, and its role in preserving the dollar’s dominance “couldn’t be timelier,” he stressed.

It allows “cheap, reliable financing for fiscal spending” on blockchain rails, which could help the U.S. dollar sustain its “substantial influence over the global financial system.”

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