Stablecoins could be key to upholding US dollar’s global reserve status: WSJ op-ed
Stablecoins are at the heart of a dollar-based revolution and could be a pivotal factor in keeping the U.S. dollar the dominant global currency, according to an Aug. 9 opinion piece published in The Wall Street Journal.
The authors, Brian Brooks and Charles Calomiris, urged Congress to implement a “sound and stable regulatory framework” for stablecoins in the country. Brooks is the former CEO of Binance.US, former chief legal officer of Coinbase and served as U.S. Comptroller of the Currency. Calomiris is dean of economics, politics and history at the University of Austin and served as chief economist of the Office of the Comptroller of the Currency.
The Clarity for Payment Stablecoins Act was proposed in July by House Financial Services Committee Chairman Patrick McHenry. However, the legislation has faced obstacles due to a lack of bipartisan agreement.
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According to Brooks and Calomiris, with emerging concerns about dedollarization — a scenario in which the dollar loses its global reserve currency status — stablecoins could revive the post-World War II arrangement when the greenback emerged as the currency of international trade.
The affirmations are backed by data from the International Monetary Fund showing that the share of U.S. dollar reserves held by foreign central banks has fallen from almost 73% in 2000 to 59% today. “Any tool that could boost the U.S. dollar should be considered,” the piece reads.
The authors issued a warning about the ongoing
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