If the United States wants the US dollar to remain the world’s reserve currency, it is according to Denelle Dixon, the CEO of the Stellar Development Foundation, important to regulate stablecoins. Dixon notes that more and more countries seem to be distancing themselves from the US dollar and stablecoins, she believes, may well be the solution to that problem.
‘They want to set the standard’
Dixon is optimistic about the year 2023 for stablecoins and expects positive developments in the field of regulation in particular. “Before the end of 2023, I expect new regulation from the United States, because they want to set the standard. If we want a strong US dollar globally, a USD stablecoin is the way to go,” said Dixon.
President Joe Biden’s administration is already working on new laws and regulations for the crypto industry, but that can’t happen soon enough, according to Dixon. “If we don’t do anything in the United States, we’ll be moving towards a split world where we have regulation outside of the United States that’s friendlier to the industry,” she said.
According to Dixon, it is time to stop talking and show what the technology is good for. “The focus should be more on utility and value for users than on technology. We need to stop talking about the technology and demonstrate more of its usefulness,” Dixon continued.
What is Stellar?
Stellar is a decentralized payment network on which Lumens (XLM) are the token standard. The project was built and developed as a hard fork of Ripple’s computer code in 2014. Stablecoins play an important role on Stellar’s network, where you can easily build new tokens.
At the time of writing, stablecoins are a growing market and represent 10.5 percent of crypto’s total market cap. There are about $133 billion worth of stablecoins floating through the market right now.
Market leader Tether has brought $14 billion in new digital dollars (USDT) to market since the start of the year. They dominate 60 percent of the stablecoin market and have a market cap of around $80 billion.
Tether’s market cap has risen this year due to the troubles at USD Coin (USDC) and Binance USD (BUSD), both of which have had their market caps fall sharply this year.