Former House Speaker Paul Ryan suggests in an op-ed published in the Wall Street Journal that the use of stablecoins could help mitigate the U.S. debt crisis and protect the status of the U.S. dollar as the global reserve currency. Stablecoins, such as USDT and USDC, currently hold over $95 billion in U.S. Treasury bills, which could help absorb U.S. debt through consistent demand. This would reduce dependence on traditional buyers like China, who have been reducing their holdings of U.S. debt. The use of stablecoins could also provide an alternative means of stabilizing the situation until further measures are taken. However, there are concerns about losing the ability to impose sanctions and control fund flows globally by integrating stablecoins into the legacy financial system. The Hoover Institution's report highlights China's advantage in digital finance and suggests that the U.S. should develop standards to counter Chinese influence. Stablecoins, with the necessary regulatory framework in place, could potentially help America regain its economic influence. U.S. Senator Cynthia Lummis proposed the creation of a national Bitcoin reserve, but the mathematical feasibility is questioned as it would require each BTC to be valued at $35.46 million. Bitcoin's recent rally to $93,265 has increased investor confidence, but caution is advised as technical indicators suggest BTC may be overvalued.



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