According to Cointelegraph: Paxos CEO Charles Cascarilla emphasized the essential role of stablecoins in securing the U.S. dollar's future as a dominant global currency and in modernizing the traditional banking system. Published on October 29, Cascarilla's letter asserts that the next administration could set the stage for the United States to lead financial innovation globally through stablecoin adoption.
Stablecoins: A Necessary Upgrade for Financial Efficiency
Cascarilla highlighted that stablecoins, or blockchain-based digital dollars, represent a vital advancement in the U.S. payment system. He argued that stablecoins could revolutionize money transfer and global economic participation, ensuring the U.S. dollar’s supremacy. "Stablecoins are the crucial upgrade for the payment system," he noted, explaining their potential to drive efficiency and inclusivity in the financial system.
Outdated Financial System Needs Blockchain Modernization
Cascarilla likened the current financial infrastructure to a "post office" in a world that has otherwise embraced internet-speed innovation. He pointed out that nearly 20% of the U.S. population and 40% globally are either unbanked or underbanked, per data from the Federal Reserve and World Bank. Stablecoins could bridge this gap, offering financial access to people with smartphones or computers, especially in underserved regions.
US Falling Behind in Regulatory Framework?
With the upcoming European Union’s Markets in Crypto-Assets Regulation (MiCA) setting the first global regulatory crypto framework, the U.S. risks lagging behind. MiCA introduces strict reserve requirements for stablecoins, potentially raising systemic risks for banks managing stablecoin reserves, as highlighted by Tether CEO Paolo Ardoino. Cascarilla urged the U.S. to act swiftly, stressing that proactive regulatory frameworks could allow the country to remain a leader in digital finance.
Moving Forward with Stablecoins
Cascarilla’s appeal aims to put stablecoins at the forefront of U.S. financial policy, suggesting that with supportive regulation, the U.S. could enhance global financial inclusion and solidify the dollar’s dominance in a rapidly digitizing world economy.