• Stellar CEO Denelle Dixon believes that the US needs to regulate the stablecoin market by the end of 2023.
• This is because of increasing demand for blockchain technology and to save the dollar’s status as a global reserve currency.
• The Stellar network already supports Circle’s USDC, which has processed payments worth $3 billion so far.
Stablecoin Regulation in US
Stellar Development Foundation CEO and Executive Director Denelle Dixon recently discussed with Bloomberg about the prospects for US crypto regulation concerning stablecoins. According to her, it is high time for Congress to cease looking at blockchain technology and focus on its utility. Moreover, she noted that United States government must regulate digital assets including stablecoins before end of this year to maintain its dollar as a global reserve currency.
Increasing Demand for Blockchain Technology
Dixon also argued that there is a real demand for United State dollar-backed stablecoins in countries affected by high inflation. She further indicated that if the federal government fails to regulate this industry timely, then customers in the country will be forced to navigate the market elsewhere to get access to such technologies such as crypto staking which are unregulated securities in USA.
Circle’s USDC on Stellar Network
The second largest stablecoin USDC issued by Circle is available on stellar network with total payments volume amounting to $3 billion so far. With increasing demand from users around the world, it becomes imperative for governments like United States governmentto channel this industry towards its CBDC and central bank money through regulatory frameworks or else risk being left behind in terms of technological advancements made using these tools and services available using blockchain technology.
Risk of Crypto Companies Fleeing USA
Dixon expressed her optimism that there will be some form of regulation regarding stablecoins before end of this year but warned against lackadaisical approach by U.S Federal Government towards regulating digital assets as crypto companies may flee their homeland and operate from more cryptocurrency friendly countries instead if nothing happens within this timeframe.
Conclusion
Overall, due to increasing demand from users around the world coupled with potential risk of crypto companies fleeing USA if not regulated timely makes it highly likely that something related to regulation of Stablecoin will come out before end of 2023 from U.S Federal Government which will help protect investments made into cryptocurrencies while also providing assurance regarding their use case & validity over other fiat currencies like USD etc
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