Stellar CEO urges regulation of stablecoins to bolster the dollar

The U.S. dollar could come under significant pressure if this year regulators fail to begin regulating stablecoins, Stellar CEO Denelle Dixon said in an interview with Bloomberg.

In her view, U.S. authorities may find themselves in a ‘split world’ where more crypto-friendly regulation exists only outside the United States.

“There will be other companies outside the United States, and there will still be a problem when American consumers want to use their technologies,” she explained.

Dixon is optimistic on this issue only because she has ‘no other choice’. CEO Stellar believes that focus should be on developing the value of stablecoins for users, rather than technology in general.

“Stop talking about the technology and start demonstrating the utility.” — @DenelleDixon on @BloombergLive ?

— Stellar (@StellarOrg) April 11, 2023

“Stop talking about the technology and start demonstrating the utility,” Dixon added.

Stablecoins currently account for about 10.5% of total crypto market capitalization. The entrepreneur hinted that it is crucial that “stablecoins” be regulated and adopted in America, since the overwhelming majority are pegged to the U.S. dollar.

In October 2022, Representative Jim Himes doubted that a bill regulating stablecoins would be passed soon due to the upcoming elections in the United States Congress.

In the same month, FDIC Chairman Martin Gruenberg stated that the use of ‘stablecoins’ as a payment instrument deserves consideration.

According to Moody’s analytics, the recent depegging of USDC from the U.S. dollar could impede the development of stablecoins and lead to tighter regulation.