Circle CEO Jeremy Allaire said the U.S. Congress shouldn’t miss the opportunity of using the stablecoin bill to strengthen the dollar’s competitiveness and safety.
In an April 25 Twitter thread, Allaire noted that the earlier draft of the stablecoin bill included provisions that would strengthen the U.S. dollar’s resilience. According to him, the Digital dollar could boost the U.S.’s ability to face the rising global competitive threats.
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Allaire said:
“The earlier draft included important provisions that would also support ongoing research into potential upgrades to core central bank infrastructure that would also strengthen US dollar resilience, and are complimentary to private sector digital dollar innovation.”
He further pointed out that:
“At a time when there are rising threats of de-dollarization, where the world is questioning the strength of the creditworthiness of the US, a dollar safety and competitiveness act such as this is vital.”
The Circle CEO previously said the new stablecoin bill could prove pivotal for the future of the U.S. dollar. He believes there should be “bi-partisan support for laws that ensure that digital dollars on the internet are safely issued, backed, and operated.”
De-dollarization threat rises
Several countries have ramped up their de-dollarization efforts, with many stepping away from using the U.S. dollar in trade settlements. For context, reports emerged that the Chinese Yuan replaced the U.S. dollar as the most traded currency in Russia in February.
Meanwhile, the BRICS nations — Brazil, Russia, India, China, and South Africa — are reportedly working on a new currency to reduce their reliance on the U.S. Dollar.
After the U.S. imposed sanctions on Russia last year, countries around the world accused the West of weaponizing the dollar. Since then, many of these nations have adopted measures that could help them circumvent these sanctions.
In an April 17 speech, European Central Bank (ECB) President Christine Lagarde warned that some countries had increased their use of alternatives to major traditional currencies for invoicing international trade.
Lagarde added that these changes suggest that the U.S. dollar’s and euros reserve currency status “should no longer be taken for granted.”
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