Cryptocurrency quickly reshapes global finance, but the United States is already going to be late.
Public debate is often attached to speculation and volatility, but true value lies in underlying technology, and it has ripe Significantly. Today’s blockchain infrastructure supports faster transactions, lower costs and programmable financial systems used for cross -border paymentsCapital training, digital identity and inclusive loans.
To maintain leadership in financial innovation, the United States must focus on the exploitation of blockchain potential to strengthen the economy while ensuring intelligent and efficient regulations. The Senate took an important first step with the adoption of GeniusBut no more action is necessary.
In countries with hyperinflation or corrupt governments, people lack confidence in their motto. Digital assets, whose supply is set by the code, rather than centralized and political government, can help preserve the value of money. Crypto also allows fast and low cost overall transfers. The shipments of traditional funds like Western Union are Dear and slow. Almost 1.4 billion people Do not have access to a bank account, but if you have a smartphone, you can save, send and receive money via a wireless connection.
Even in the United States, where 95% of adults Have bank accounts, Crypto offers an almost instant configuration and a low cost alternative for those with limited financial access. People can question the need for instant payments, but for small businesses, hourly workers and immigrants who send money home, waiting for a banking transfer can mean late invoices, overdraft costs or missed wages. Venmo and Paypal can feel digital, but they operate on closed networks, cannot communicate with each other and always depend on banks. The stablecoins, however, move 24/7 on platforms and borders, settling in a few minutes, not days.
America has always been a global hub for innovation, but we are lagging behind cryptocurrencies and the construction of services and solutions based on blockchain. India And Singapore continue in adoption and infrastructure. In The second quarter of 2024, $ 1 billion In crypto, payments were treated in Singapore. On the other hand, the United States has treated crypto mainly as a speculative asset instead of exploring its potential as a real payment system. We have talent and capital to direct in crypto, and a president who supports industry. However, without regulatory progress, we risk allowing the opportunity to catch up and lead a shift.
Stablecoins, digital assets designed to be worth an American dollar, are at the center of this perspective. They grow, and although they are not the only type of cryptographic asset, they are the most likely to affect everyday people and the wider economy. Without appropriate regulations, Stablecoins may present risks for consumers and financial markets.
One way in which the United States can start to lead in the cryptocurrency industry is to promote an innovation environment, starting with regulatory clarity on how cryptocurrency is part of the payments, digital identity and financial access infrastructure. This is why it is important that the engineering law adopted the Senate. It establishes federal standards for stablescoins, which forces them to be supported in one for US dollars or equally safe assets, subject to regular audits and anti-whiteness compliance. This is an important step towards the balance of innovation and consumer protection.
Other proposals still under study – as The act of clarity – would clarify if digital assets are securities, regulated by the SEC, or raw materials, regulated by the Commodity Futures Trading Commission. The stable actis based on the law on engineering but goes further by requiring that stablecoin issuers be assured of the institutions of deposit (i.e. banks). Together, these bills can provide structure, security and legitimacy to the cryptographic economy while positioning the United States as a world leader in digital finance.
We see momentum in the private sector. Circle, the company behind the USDC Stablecoin, recently had a first public offer at high demand from investors. Block Inc. deploys Bitcoin payment options on the square point of sale terminals, which makes crypto easier to use in daily transactions. And Ripple, a large crypto infrastructure company, acquired Hidden Road, an active foreign exchange broker, digital active ingredients, fixed and derivative income, blurring the border between traditional finance and crypto.
These developments point out that the crypto is entering the dominant financial current. The only real question is whether the United States will lead or follow.
