The US government needs to get a stablecoin to control wages.

The relationship between the tech industry and global politics is getting more and more difficult!

Undoubtedly, the growing Web3 industry is attacking it for many reasons. One criticism that has emerged in Washington is that digital profiteering could weaken America now and even the dollar itself.

However, when digital assets have replaced all existing financial services, they are not the enemy of the dollar. In fact, as a digital tool, stablecoins can keep the dollar regulated globally. However, for the United States to exploit the potential of a stablecoin, lawmakers and regulators must comply with legal measures.

Stablecoin is a type of digital asset designed to maintain a stable price over the long term. It differs from other digital assets in that its value is usually linked to a fiat currency such as the US dollar. They've also come a long way since Facebook attempted to create its own "Libra" stablecoin two years ago.

Facebook originally created Libra as a new currency, pinning it to the basket of fiat currency and security rather than a single currency. Supporters of his case have been working to make the actual transcript of that statement available online. In the past, President Donald Trump has said that Libra "will matter little or nothing" and that "the only real advantage in the United States will be the dollar."

Until today, the special relationship between the stablecoin and the US dollar can continue without affecting the dollar. However, this ability can only be seen if there are enough US policymakers to understand the promise of a stablecoin and apply good policies to encourage new developments.

Exponential Growth of Stability Coins

Financial stability has increased and the market has grown from $5 billion in December 2019 to over $158 billion in December 2021.

One of the reasons for this growth is the particularly good quality of the fixed currency compared to the current financial system. For example, stablecoins can be sent immediately to anyone in the world with no exchange rate.

For a particular example of the impact of stability coins, consider the use of fixed funds by migrant workers. In most cases, employees send money home from traditional financial institutions. This process can take several weeks and costs an average of 7% of an employee's income depending on currency and exchange rates. Stablecoins, on the other hand, allow migrant workers to immediately send their earnings home with little or no pay.

USD Demand Grows With Stablecoins

Since all fixed income coins are pegged to the US dollar, their global adoption presents a significant opportunity for the US to broaden its appreciation of the US dollar. Meanwhile, big venture capital firms like Circle are holding US dollars and selling US Treasuries. This increases the demand for dollars and makes it easier for buyers around the world. These advances put the United States in a better position than any other country to invest in consumers benefiting from this new technology.

Since the network effects support the popularity of stable dollar coins, a stable economy seems to have a greater demand for the US dollar. This is especially true in countries where demand has not been met, such as Argentina, where the government prohibits citizens from accessing difficult funds.

What will happen in the United States?

Despite its potential, the illegal trade could affect the stability of the US economy overseas. The lack of clear regulation of blockchain companies has allowed US manufacturers to move their business to the place with simpler rules, such as Singapore, Portugal, and the Cayman Islands. Fidelity Investments, one of the most well-known stockbrokers in the United States, deliberately announced the Bitcoin ETF in Canada, as regulators have yet to approve a similar deal in the United States.

In addition, recently passed construction industry legislation, there is a dearth of digital property publishing rights. Supporters of his case have been working to make the actual transcript of that statement available online.

When it comes to stability coins, policymakers are divided. The pressure on the Senate Banking Committee during the recent fixed coin hearing was strong. Senators expressed a number of concerns, including Libra, indicating a lack of understanding or appreciation for various forms of fixed income securities. Meanwhile, the bipartisan council's interest in the stablecoin surprised observers during a major hearing earlier this month. Federal Reserve Chairman Jerome Powell said, “If managed well, a stablecoin can be a profitable, profitable, and consumer-friendly currency.”

To support safety improvements in the United States, legislators and regulators must provide clear safeguards to industry, rather than disrupt business. Policies should ensure security and transparency without restricting the ability of companies to improve through innovation, such as decentralized reserves.

Lawmakers need to consider the negative externalities a stablecoin can have for a country that cannot compete with the United States. Stablecoins help citizens avoid governance and government corruption, but they can also lead to disruptive, state-friendly governance gaps.

If the United States, intentionally or not, pushes stable markets, foreign and foreign governments will be more willing to join the ranks.

Exchange rates began to stabilize coins in other currencies, including the Euro and Canadian dollar. Demand for the dollar-denominated stable statement will continue, but if US coastal trade policy is not followed, the US will once again be less likely to set up and endorse the dollar.

China, South Africa, South Korea, Sweden, and others are taking a tougher path than the United States in backing stablecoins and testing their bank financial support to stabilize so-called central bank digital currencies (CBDC). It remains to be seen whether CBDCs will be able to appeal to consumers, especially when it comes to privacy concerns, but it could lead to disruption of the stable value the US currently sits on.

Global currency competition has arrived and developed rapidly. Countries that do not accept will be rejected. The United States is no exception.