Ethereum

Stablecoin

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PayPal USD

Bitcoin

In an interview on Monday, U.S. Representative French Hill emphasized legislative efforts to enable the private sector to lead the development of a dollar-backed payment stablecoin and predicted quicker market entry for spot Ethereum ETFs compared to Bitcoin ETFs.&nbsp;
U.S. Representative French Hill, chair of the subcommittee on digital assets, discussed future stablecoin-related policy in the United States during a CNBC “Squawkbox” <a href="https://www.cnbc.com/video/2024/05/28/whats-next-for-crypto-bill.html" data-type="link" data-id="https://www.cnbc.com/video/2024/05/28/whats-next-for-crypto-bill.html" target="_blank" rel="noopener noreferrer nofollow">interview</a>.
“We are still working on a payments stablecoin bill that will let the private sector here lead… on a dollar-backed payment stablecoin,” Hill said.&nbsp;
Hill mentioned that efforts are ongoing to develop the bill, which would empower the private sector to take the lead in creating a dollar-backed payment <a href="https://crypto.news/tag/stablecoin/" rel="noopener noreferrer nofollow">stablecoin</a>. This initiative highlights the focus on leveraging private industry capabilities to advance stablecoin technology in the financial sector.
In August 2023, PayPal <a href="https://crypto.news/paypal-usd-stablecoin-to-be-integrated-into-venmo/" data-type="link" data-id="https://crypto.news/paypal-usd-stablecoin-to-be-integrated-into-venmo/" rel="noopener noreferrer nofollow">introduced</a> its new cryptocurrency, <a href="https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd" target="_blank" rel="noopener noreferrer nofollow">PayPal USD</a> (PYUSD), as a stablecoin backed by secure and highly liquid assets.&nbsp;
“I think that concept of a tokenized payment through a payment stable coin makes sense inside certain applications on a blockchain,” Hill said.&nbsp;
Hill said last week’s most recent legislative push comes as an effort to ensure stablecoin regulatory clarity and consumer protection in the stablecoin market.&nbsp;
<h2 class="wp-block-heading" id="stablecoin-benefits-and-risks">Stablecoin benefits and risks</h2>
In the past, an answer to crypto volatility was through <a href="https://crypto.news/policymaker-us-doesnt-need-a-retail-cbdc/" target="_blank" data-type="link" data-id="https://crypto.news/policymaker-us-doesnt-need-a-retail-cbdc/" rel="noopener noreferrer nofollow">stablecoins</a>, which are cryptocurrencies that aim to keep a stable value relative to a specified asset or a pool of assets, like the US dollar.
A stablecoin held in bank accounts would safely expand and enhance the money supply of any currency. A stablecoin pegged to the U.S. dollar can boost economic growth by enabling more efficient use of the dollar, leading to quicker and cheaper transactions.&nbsp;
Potential economic risks associated with stablecoins include <a href="https://crypto.news/crypto-and-banking-tokenization-of-the-global-financial-system-is-yet-to-come-opinion/" target="_blank" data-type="link" data-id="https://crypto.news/crypto-and-banking-tokenization-of-the-global-financial-system-is-yet-to-come-opinion/" rel="noopener noreferrer nofollow">legal issues</a>, governance concerns, operational resilience, money laundering, terrorist financing, consumer protection, and impact on monetary policy and financial stability.&nbsp;
<h2 class="wp-block-heading" id="spot-ethereum-etf">Spot ethereum ETF&nbsp;</h2>
Representative Hill also predicted that <a href="https://crypto.news/ethereum-etfs-fit21-bill-bitcoin-71k-weekly-recap/" data-type="link" data-id="https://crypto.news/ethereum-etfs-fit21-bill-bitcoin-71k-weekly-recap/" target="_blank" rel="noopener noreferrer nofollow">spot Ethereum ETFs</a> would reach the market faster than Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) ETFs did earlier in 2024.
Hill expressed that the cash and futures market correlation “enhances the assessment of Ether and puts it on a slightly shorter timeframe than we saw in the Bitcoin process.”&nbsp;

French Hill discusses Ether ETF, payments stablecoin bill

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