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04-12-2023 icon

US Required to Manage Stablecoins to Maintain Dollar Stability: Stellar CEO

By Lucy Adegbe
Stablecoin

The US financial managerial body is adopting a more strict measure of control over the digital currency space and the US legal tender appears to be threatened with diverse nations withdrawing from the solar predominance, but Stellar CEO notes that stablecoin management may be the solution.

In a Tuesday Bloomberg discussion session, Denelle Dixon, the chief executive officer and chair director of Stellar Development Foundation, mentioned the possibility of managing the dollar-pegged virtual currencies in the US.

Dixon noted how positive it would be if there were some level of stablecoin management policy in the United States region before the wrap-up of 2023 to create a standard.

President Joe Biden’s tenure has, so far, underlined the importance of a stablecoin management setup, nonetheless, Dixon noted that it would have to go through Congress.

According to Dixon, if nothing is done in the United States, there would be the existence of a divided world in which legislature exists outside of the United States, which is favourable to digital currencies.

Stablecoin presently constitutes about 10.5% of the digital currency market cap with an estimated $133 billion in existence. Dixon indicated the importance of stablecoin getting appropriate managerial policies and acceptance in the United States of America as a significant portion of them are pegged to the nation’s dollar.