Imagine a world where every dollar spends is tracked, approved or denies in real time by a government agency. You try to send money to a friend for a political donation, but the transaction is blocked because the recipient is in a “surveillance list” of the government. You buy a critical book from a powerful politician and your account is marked for review.
This dystopian future sounds scandalous, but it is the logical final point of a monetary system fully controlled by the government and monitored for which some prominent responsible for formulating US policies defend. Its defenders argue that such an amphitosed government system would avoid crime. Actually, it would destroy the central freedoms of financial privacy and autonomy. Stablecoins are an existing alternative to this dystopia. Both are a great financial innovation and a bulwark against financial authoritarianism. The United States Congress must support this technology since the Senate Banking Committee weighs legislation to provide clarity to the industry and its clients.
The stablecoins, digital currencies linked to the value of traditional currencies such as the US dollar, provide the benefits of cryptocurrency: rapid, economic transactions, without borders and programmable, without the volatility of assets prices such as Bitcoin. In general, 1: 1 are backed with cash in US dollars and cash equivalents, providing stability and trust. Its programability allows transactions to be executed automatically when specified conditions are met, unlocking enormous potential for automated financing, overall supply and trade chain efficiency.
Senators of the entire political spectrum of the United States, who understand current cases of technology and the vast future possibilities that we still cannot imagine completely, have proposed reflexive legislation to guide regulations that will promote innovation while protecting consumers. This collaborative approach reflects the understanding that Stablecoins could revolutionize global finances, improve financial inclusion and preserve the domain of the US dollar in the digital age.
Unfortunately, some senators, especially Senator Elizabeth Warren (D-MA), remain in marked opposition to this progress. Instead of adopting innovation, he pursues legislation that would suffocate Stablecoins in his childhood. The Warren Senator paints Stablecoins as tools for illegal activities, claiming that they mainly facilitate fraud, drug trafficking and terrorist financing. Its characterization is not just inaccurate, it is dangerously misleading.
Data directly contradict Senator Warren. Multiple reports of Blockchain analysis companies consistently show that illegal activity represents a small fraction of Stablecoin transactions, often less than 1% of the total volume. In fact, traditional cash is used much more frequently for money laundering and illicit trade than stable. Blockchain technology, with its main and transparent book, actually makes illegal activity easier to track and prosecute than cash -based crime.
The poorly informed worldview of Senator Warren leads to advocate by a closed and monitored financial system of the government, one in which each transaction is analyzed, private financial activity becomes impossible and access to financial tools is closely controlled. In addition to being a morally objectable invasion of privacy, its design would be operationally implementing.
It would also weaken the global domain of the dollar, since emerging economies and developing nations would resort to other digital currencies that are easier to access and use. Their limitations could not only prevent the development of an important new technology, but also to interrupt and harm Americans and common companies, and people around the world, who are using Stablecoins today to move value through the Internet as easily as sending an email or text message, often to a fraction of traditional costs. For example:
- The main US corporations such as Visa and Paypal are using stablcoins to solve some cross -border payments, reducing liquidation times from days to minutes and reducing costs.
- By gaining dollars in the default currency of the digital economy, Stablecoins reinforces the role of the dollar as a global reserve currency.
- The greatest global stable demand called in dollars increases the demand for US dollars and treasure values, helping to finance government loans at lower rates.
- In countries that suffer from high inflation or capital controls, the stables provide common citizens with a safe and called dollar savings option, protecting their wealth from poor economic management.
- Migrant workers who send money home can do so faster, economically and more reliably with the stable than through traditional remittance services, which often charge exorbitant rates.
Warren Vision rejects the open, public and universally accessible system that develops today, a system where people and companies can freely make transactions, without the need for banks or governments permission. Fortunately, there is still hope of a balanced regulatory approach.
Senators Bill Hagerty (R-TN), Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY) and Tim Scott (R-SC) have introduced the act of bipartisan genius that would create a constructive regulatory framework for stabilized sequelae that addresses legitimate concerns while allowing innovation. Genius Law and the Executive Order of the White House in Strengthen US leadership in digital financial technology, Both will ensure that the benefits of blockchain technology can be fully carried out in open, freely accessible and transparent public blockchains.
Congress must embrace the stable, not fear them. The future of money is being written today. Will the United States lead this transformation, ensuring that digital dollars remain the global standard? Or fear, erroneous information and suffocating regulation will deliver the future of finance to other nations? The choice is clear: to support innovation, promulgate intelligent regulation and let Stablecoins flourish.
