Congressman calls stablecoins a ‘pillar of our 21st-century payment system”

US Congressman Patrick McHenry has released a statement calling the Stablecoin a “pillar of our 21st-century payment system.” He stated that the arrival of PayPal’s PYUSD is a “clear signal” of the overall potential of the asset in the modern world. He believes that Stablecoins can be a strong part of our payment system if they follow regulations and prioritise consumer protection.

Also PayPal's entry into the digital asset industry could be an important moment in its evolution. The involvement of traditional finance firms like BlackRock and Fidelity could help develop regulations for the industry.

Citizens of countries like Argentina have been relying on stablecoins to hedge against their hyperinflation. Also, we don’t yet have FDIC insurance on stablecoins, so a de-peg like luna could mean you could lose all the value. At the same time, the ability to freeze the tokens by stablecoin companies is good to intervene in case of scams but for privacy concerned users, this is not the way.

source: https://twitter.com/FinancialCmte/status/1688541930752262144?s=20

https://imgur.com/a/Yg0TAD9