Paxos CEO Charles Cascarilla has urged U.S. presidential candidates to prioritize stablecoin and blockchain technology to strengthen the dollar’s global influence. Cascarilla believes the following U.S. administration will play an important role in finance.
He pointed to stablecoins as the essential conduit to streamline the financial system. This push is designed to increase economic participation by adopting the digital dollar and reduce the inefficiencies seen in traditional banking.
A stablecoin is digital dollars, and Cascarilla argues that digital dollars are a critical upgrade to the payment system. Such a technology would help modernize money transfers, make world economic participation more inclusive, and support the dollar’s supremacy.
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With those updates, the U.S. can stay caught up on crypto regulations, falling behind countries like the EU, says Cascarilla. In an open letter, he writes that the global financial system is outdated. Millions of people are being deprived of basic banking services.
Stablecoins can improve financial access for anyone with access to the internet. It can fill gaps in unbanked regions, he added. Such a shift would create new economic opportunities for the U.S. and other global communities.
Paxos CEO Pushes for U.S. Crypto Leadership
With the upcoming U.S. election scheduled for November 3, that interest is heightened because decisions on crypto regulation could influence the sector’s future. Observers say that former President Donald Trump has been perceived as fairly crypto-friendly, possibly boosting innovation and loosening restrictive regulations.
On the contrary, Vice President Kamala Harris has not taken a firm stand on cryptocurrency. In his letter, Cascarilla calls for U.S. leadership on financial modernization, saying the impact of blockchain will equal that of the internet.
According to him, the U.S. can, by adopting stablecoins help ensure the dollar remains a competitive currency on the global stage. The next administration, many in the crypto community hope, will see blockchain’s potential to revolutionize finance.
The U.S. regulatory environment around cryptocurrency is not as robust as Europe’s Markets of Crypto Assets (MiCA) regulation. While Europe is pushing its framework, U.S. crypto advocates are trying to get regulators to move quickly.
MiCA Reserve Rules Raise Banking Concerns
Cascarilla likens the current financial system to the post office. He says it doesn’t operate with the necessary efficiency. He believes stablecoins can help by enabling faster and less expensive transactions than traditional banking.
Having the financial industry aligned with technological advancements elsewhere would be a push for digital dollars. Concerns over stablecoin reserves have also been raised as Europe’s MiCA regulation enters play.
Tether’s CEO, Paolo Ardoino, expressed problems a few days ago about MiCA’s reserve requirements due to the possibility of jeopardizing the banking sector. If one fails, Ardoino argues, then the bank’s balance sheet will have to account for large cash reserves, which will pressure banks.
By adopting blockchain and stablecoins, the U.S. will offer access to millions who do not have access to basic banking services. Citing data from the Federal Reserve and World Bank, Cascarilla states that there are a high number of unbanked populations around the world.
Blockchain solutions can address those. By expanding access, stablecoins could enable people to participate in the economy more fully in areas not well served.
