US Can 'Keep Up With China' Through Stablecoins: Former House Speaker Ryan

Former House Speaker Paul Ryan believes cryptocurrencies, specifically U.S. dollar-backed stablecoins, can help the world's largest economy catch up with the fintech developments in China, given the Asian powerhouse's embrace of digital dollar technology.

In a recent opinion piece on The Wall Street Journal titled "Crypto Could Stave Off a U.S. Debt Crisis," Ryan, a Republican who served as the House Speaker under then-President Barack Obama, wrote that "stablecoins backed by dollars provide demand for U.S. public debt and a way to keep up with China."

He urged lawmakers to consider drawing up a "sound, predictable regulatory framework for stablecoins" in the country since other countries have apparently found success "at bolstering their currencies' influence while dumping Treasury debt." For Ryan, dollar-backed stablecoins are one of the ways through which the U.S. can resolve its mounting debt.

"The U.S. can't afford to sit idly as its largest international competitor taps latent demand for safe and convenient digital money," he wrote. He did not endorse a central bank digital currency (CBDC) similar to China's e-yuan that has been adopted by HSBC China, but he did note that "dollar-backed stablecoins issued on public, permissionless blockchains come packaged with deeply American values of freedom and openness."

There are several U.S. dollar-backed stablecoins in the market, including Tether (USDT) and U.S. Dollar Coin (USDC). Ryan, who is now a member of venture capital firm Paradigm's Policy Council, did not specify which stablecoins he would promote.

Tether is currently the largest stablecoin by market value, with a market cap passing $100 billion, as per CoinGecko. However, Tether was recently under scrutiny following reports that Washington and the United Kingdom were investigating more than $20 billion of USDT that passed through Garantex, a sanctioned Russian crypto exchange.

Ryan also noted how 2024 is an "election year," and with expectation of "all the ugly politics to come," he believes lawmakers can win if they push for a bipartisan stablecoin regulatory framework.

Several candidates, including leading presidential candidates, have already been showing interest in the crypto sector in recent months. On the other hand, none have so far been specifically mentioning stablecoins.

Just last week, Republican presidential candidate Donald Trump told miners he wants all the remaining Bitcoin to be mined by American miners. Incumbent President Joe Biden's campaign has reportedly been in talks with key industry players on "crypto policy."

While Trump has been more vocal in recent months about his growing support for the digital assets space, it appears the Democratic president is also beginning to recognize the industry's impact on politics.