- Nyag warned that Bitcoin could threaten the dominance of the US dollar and American interests
- She also insisted on a careful consideration to guarantee the dollar position via Stablecoins
New York Attorney General (NYAG) Letitia James is the last to get concerned about Bitcoin’s [BTC] Potential threat against the dominance of the US Dollar (USD). In one letter to the congress, she noticed,
“America must defend the prime position of the US dollar for worldwide transactions – a position that threatens Bitcoin, which can immediately transfer the value worldwide.”
James expressed his concern that if Bitcoin sees widespread adoption, this could weaken American interests, including the effectiveness of American sanctions.
Stablecoin solution for BTC distribution
To alleviate this, she insisted on the congress to consider Tshoring stablecoins Publishing institutions supported by American Treasury accounts and kasequalalents. This would enable to supervise emptents under American federal laws.
According to the NYAG, Stablecoin offshore mittens can falsify their financial health files and expose the American Treasury market and the banking system to infection risks. She added,
“Regulators with supervision of stablecoin emission should ensure that repayment requests do not create runs on the bank by requiring diversification of institutions where Stablecoin deposits are held, diversification of deposit basses and increased capital requirements.”
Some market analysts and top company leaders, however, believe that the dominance of BTC against the US dollar is inevitable. For example – in an annual report to investors, BlackRock’s CEO Larry Fink stated”
“If the US does not get its debt under control, if deficits continue to have ballooning, America risks Losing that position (Global Reserve Currency) to digital assets such as Bitcoin. “
Tarifaries Fuel Crypto Fire
For his part, Jeff Park, head of Bitwise Alpha strategies, noted That the current tariff wars can strengthen the position of BTC.
“Higher chance Bitcoin survives the dollar during our lives after today (renewed tariff wars).”
On the contrary, other market guards reproduction The push for us Domiciled Stablecoins as a victory for selected products such as RLUSD.
Stablecoins are supported 1: 1 to reserve assets, such as the US Dollar, Gold, etc. Tether’s USDT is the largest stablecoin per market capitalization and the seventh largest American treasury copper from 2024.
In fact, with the expectation that the market will grow from $ 230 billion to $ 2.8 trillion by 2028, Stablecoins could actually help strengthen the global dominance of the US dollar.
As a result, the American House of Representatives and the Senate have advanced two Stablecoin accounts of their respective committees to offer regulatory clarity to the sector.