In a <a href="https://x.com/AltcoinDailyio/status/1802491044527026244" target="_blank" rel="noopener nofollow">proposal</a> laid out in the Wall Street Journal, former Speaker of the House Paul Ryan has advocated for a novel fiscal strategy that integrates cryptocurrency, specifically dollar-backed stablecoins, into the US economic framework to counteract the looming threat of a national debt crisis. Ryan, a prominent figure who led the House of Representatives until 2019, underscores the urgency of adopting stablecoins to prevent a catastrophic failure in the next debt auction, which he believes could undermine the global credibility of the United States and precipitate a major financial downturn. 
<h2 id="here-s-how-crypto-can-save-the-us">Here’s How Crypto Can Save The US</h2> 
Currently serving on the Policy Council for Paradigm, a venture capital firm focused on crypto innovations, Ryan brings a unique perspective that bridges traditional financial mechanisms with emerging digital solutions. In his opinion piece, he articulates a comprehensive vision for leveraging stablecoins to enhance the liquidity and appeal of US government debt on a global scale. 
Ryan argues that stablecoins, which are cryptocurrencies designed to maintain a stable value by being pegged to fiat currencies like the US dollar, could significantly bolster demand for <a href="https://bitcoinist.com/bitcoin-could-fall-to-25000/" target="_blank" rel="noopener ">US public debt.</a> He suggests that these digital assets could outpace traditional foreign investors in Treasury securities, such as Hong Kong and Saudi Arabia, by providing a more stable and reliable mechanism for purchasing US debt. 
“Dollar-backed stablecoins not only provide an avenue for maintaining the US dollar’s dominance as the international reserve currency but also act as a crucial instrument for financing the US deficit without compromising long-term economic stability,” Ryan explains. His proposal emphasizes the dual <a href="https://bitcoinist.com/circle-euro-stablecoins-boom-mica-live/" target="_blank" rel="noopener ">benefits of crypto stablecoins</a>: facilitating effective debt management and reinforcing the dollar’s international standing. 
Ryan’s call for a “robust and predictable regulatory framework for stablecoins” is aimed at fostering an environment where these digital assets can thrive securely and predictably. He criticizes the current lack of comprehensive regulations, which he views as a significant barrier to the adoption and growth of stablecoins in mainstream financial operations. 
He elaborates on the potential economic implications of integrating crypto stablecoins into the US financial system, including the mitigation of risks associated with fiscal imbalances and the reduction of dependency on foreign debt holders. By doing so, Ryan posits that stablecoins could serve as a buffer against economic shocks, such as those experienced during market contractions and confidence crises in the dollar. 
In the broader geopolitical arena, Ryan identifies the strategic importance of maintaining the dollar’s supremacy in the face of rising challenges from global competitors like China. He points out that China has been aggressively pursuing enhancements to its international economic stature, positioning itself as a formidable rival in the global financial system. 
“By integrating stablecoins into our financial arsenal, we not only secure our financial autonomy but also counteract efforts by other nations to erode the dollar’s global influence,” Ryan asserts. He stresses that proactive financial innovation, such as the adoption of stablecoins, is critical to sustaining the US’s economic dominance and preventing potential political and economic unrest. 
Notably, Tether, the issuer of USDT, is already one of the largest US treasury holders. As of March 31, its financial <a href="https://bitcoinist.com/tether-1-billion-warchest-investments-key-markets/" target="_blank" rel="noopener ">records showed</a> holdings of $91 billion in US Treasury bills, both direct and indirect, along with $5.4 billion in Bitcoin. These holdings ranked Tether as the 19th largest global holder of US Treasuries, situated between South Korea and Germany. 
At press time, BTC traded at $65,688. 
<img loading="lazy" decoding="async" class="size-full wp-image-305916" src="https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473" alt="Bitcoin price" width="1024" height="473" srcset="https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=3628 3628w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=1140 1140w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSD_2024-06-17_14-44-40.png?resize=1024%2C473?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Crypto Could Avert Debt Crisis, Says Ex-US House Speaker

Table of Contents

Bitcoinist

Other articles published on Jun 17, 2024

Unlock Staking Rewards with MoonBag as it Surges to $1, Leaving BitBot and Render Behind

Tether Launches Synthetic Dollar On Tokenization Platform

Bitcoin Critic Peter Schiff Asks Elon Musk Important Question

South Korea’s New Crypto Law Might Delist 600 Altcoins If Fails To Meet

Is It Too Late To Buy CVX? Convex Finance Price Soars 63% And This Might Be The Next Crypto To Ex...

From Soccer Field to Crypto: Hassan Sunny Joins HTX as Security Chief

Join our free newsletter for daily crypto updates!