Stablecoins: A Potential Solution for U.S. Dollar Challenges

According to PANews, on June 17, the U.S. Senate passed the "Stablecoin National Innovation Act" with a vote of 68 in favor and 30 against. This legislation aims to establish regulatory guidelines for stablecoins pegged to the U.S. dollar. The act mandates that each issued stablecoin must be backed by an equivalent amount of high-liquidity, secure assets and integrates stablecoins into anti-money laundering and financial regulatory frameworks. Analysts suggest that stablecoins could alleviate U.S. debt pressures and enhance the dollar's influence in the global financial system. However, they also warn of systemic risks and regulatory challenges. If not properly designed, stablecoins could be misused as leverage tools to increase debt, delaying the resolution of the dollar's inherent issues. Furthermore, they could potentially undermine other countries' monetary sovereignty, leading to risk accumulation and adverse effects on the U.S. financial system.