According to a former regulator and cryptocurrency executive, stablecoins could be a way to make the US dollar more important in the global financial system.
Brian Brooks, a partner at Valor Capital Group and former CEO of Binance.US, said in an interview with CNBC that stablecoins can help people in hyperinflationary countries access dollar-denominated products. However, he argued that the US government should create a regulatory framework that allows stablecoins to operate with transparency and oversight.
“Citizens in high-inflation countries have a really strong demand for dollar-denominated products to keep their money safer once they have the money,” Brooks said.
“In many countries where you cannot have a dollar-denominated bank account, stablecoins are the best solution for you.”
Brooks, who also served as the US Currency Controller under the Trump administration, said that regulation of stablecoins would benefit both consumers and the global dominance of the US dollar:
“If the U.S. government created a framework that allowed the dollar to support stablecoins in a regulated manner, that demand would only improve. That would be fine for the global adoption of the dollar, but as long as we allow governments to suppress stablecoins, you have a kind of push-pull phenomenon, which is what's causing the problem.”
He added that stablecoins are not about cryptocurrencies, but about the role the US plays in the financial system.
*Not investment advice.
