February 16, 2022
Barron’s–(BARRONS)–The U.S. financial system dominated the 20th century on the strength of the U.S. dollar. This structure created millions of jobs, unleashed unparalleled economic growth, and bolstered national security. But that same financial system showed cracks in its foundations in the early part of the 21st century. It began stagnating on innovation and losing ground to global competitors, prompting questions about America’s future.
America’s future and the future of the dollar can be more secure, open, and inclusive if policymakers act decisively on digital assets and blockchain technology. These technologies, born amid the Great Recession, represent a once-in-a-lifetime opportunity to reshape not only the U.S. financial system, but the global financial system for the tangible benefit of people everywhere and to strengthen American economic competitiveness in a 24/7 global economy.
Policymakers should start by setting clear standards for stablecoins, which are digital assets whose value is tied to other assets such as the dollar. Dollar-referenced stablecoins support the growth of the dollar and the current monetary policy of the U.S. combined with the power of the internet: always-on, fast, low-cost, nearly universally accessible.
It’s because of blockchains and stablecoins that companies can build solutions that serve marginalized or vulnerable populations. Leaf Global FinTech created a digital wallet for refugees, who are at risk when carrying cash across borders, so they can save their money in multiple currencies, transfer money across borders, and pay for goods and services. Leaf can keep remittance costs down, and ultimately make these payments more accessible to those most in need, because they’re able to access the Stellar blockchain network and use stablecoins to exchange value quickly and with low fees.
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