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- Stellar CEO thinks the United States has no option but to regulate the stablecoins market by the end of this year to save the dollar as a global reserve currency.
- The second largest stablecoin USDC issued by Circle is available on the stellar network with a total payments volume amounting to $3 billion so far.
The United States government is gearing up to regulate digital assets including stablecoins. With the emergence of algorithmic stablecoins like Cardano’s Djed, the United States government seeks to channel this industry towards its CBDC and central bank money. Moreover, it is the only way the United States federal government can reassure the dollar enthusiast as a global reserve currency.
During a Bloomberg interview on Tuesday this week, Stellar Development Foundation CEO and Executive Director Denelle Dixon discussed the prospects for US crypto regulation with Kailey Leinz and Matt Miller. According to Dixon, the United States has no choice but to regulate the stablecoins industry by the end of this year.
She added that it is high time for Congress to cease looking at blockchain technology and focus on the utility it offers. Furthermore, Dixon indicated that there is a real demand for United State dollar-backed stablecoins in countries affected by high inflation. Dixon noted.
I am very optimistic that we are going to get something on stablecoins by the end of the year. The reason why is that we don’t have a choice. If we wanna have a voice in this, we need to get it done this year.
She noted that crypto companies in the United States will be forced to flee to friendlier nations to leverage the technology. With the increasing demand for blockchain technology in the United States, Dixon indicated that customers in the country could be forced to navigate the market to get access to the technology.
Already, crypto staking is not available in the United States after the SEC indicated that such programs are unregulated securities.
Thank you so much @GaryGensler for protecting me and all my fellow Americans. pic.twitter.com/0wDYRCbuCc
— John E Deaton (@JohnEDeaton1) April 14, 2023
Stellar XLM and the Stablecoins Market
The Stellar blockchain was designed to help in the tokenization of fiat currencies in mind. As a result, issuing stablecoins on the stellar network is native and seamless. Notably, the Stellar blockchain is already being used by IBM to issue stablecoins to several banks. Earlier last year, Stellar announced that Novatti Group Limited would launch an Australian Dollar (AUD) backed stablecoin. Novatti’s Managing Director, Peter Cook noted.
Through this new product, we will be able to provide our clients with a faster, lower cost and more flexible option to pay and be paid, while opening up potential new revenue streams.
In 2020, Settle Network, a company that accepts crypto payments worldwide, announced that it launched two new stablecoins based on the Stellar network.
Most importantly, the second largest stablecoin USDC issued by Circle is available on the stellar network with a total payments volume amounting to $3 billion so far.
