Circle’s Chief Strategy Officer, Dante Disparte, testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on Aprilm 19. He spoke about the benefits of payment stablecoins, which are cryptocurrencies pegged to a stable asset like the U.S. dollar. Disparte argued that payment stablecoins can advance U.S. competitiveness and national security, as they provide a low-cost, fast, and secure way to transfer funds domestically and internationally, he said in a written statement.
He explained that payment stablecoins can create significant efficiencies in the global financial system by reducing the need for intermediaries like banks and payment processors. This can lead to lower transaction fees and faster settlement times, benefiting consumers and businesses alike. Additionally, payment stablecoins can enable financial inclusion by providing access to banking services to individuals who are currently underserved or excluded from the traditional banking system.
Furthermore, Disparte emphasized that payment stablecoins can promote U.S. competitiveness and national security by enhancing the country’s role in the global financial system. With China and other countries investing heavily in digital currencies, the U.S. needs to keep pace to maintain its leadership position. By embracing payment stablecoins, the U.S. can encourage innovation in the fintech sector, attract investment, and promote the development of a thriving ecosystem of digital currencies.
Disparte also addressed concerns about the potential risks associated with payment stablecoins, such as money laundering, terrorist financing, and cyber attacks. He emphasized the importance of implementing appropriate regulatory and compliance measures to mitigate these risks, while also fostering innovation and growth in the industry.
Lastly, Disparte argued that payment stablecoins can provide significant benefits to the U.S. economy and financial system. By embracing this technology, the U.S. can enhance its competitiveness and national security, while also promoting financial inclusion and innovation. However, it is important to implement appropriate safeguards to mitigate potential risks and ensure the safety and stability of the financial system.
