In the early 1990s, telephone companies broadcast announcements for long -distance calls highlighting the cost per minute for a American customer to speak to someone from another country. Today, this company does not exist. You can now facetime or zoom anyone, anywhere, for free.
What has changed?
The transition to the voice on the Internet Protocol (VOIP) finally led the price of calls for almost zero.
Today, we are experiencing a transformation similar to a global and integrated financial layer emerges on the Internet. This will ultimately make money transfer costs closer to zero, transforming a system long overwhelmed by high fees, delays and intermediaries.
Stablecoins are the application that stimulates this evolution. The maxim “Adoption is slow until it is fast” captures their explosive growth in recent years. To obtain an idea of ​​the scale, the stablecoin transaction volume exceeded 27 dollars billions in 2024 – exceeding the combined visa and mastercard. Today, there are stablecoin suppliers, such as Tether, which contain more American treasury bills than whole countries like Germany and the Netherlands.
Stablecoins are no longer a niche experience. They become more deeply anchored in our global financial ecosystem. While American legislators debate the stable legislation, the objective should be clear: strengthen the domination of the dollar as a global reserve currency while extending its scope in the corners of the world that traditional banks cannot touch. This should include many important players – not just those based in the United States.
Two paths, a future
The congress is at a crossroads between two general positions. One is a closed market approach in which stablecoin issuers based in the United States would be favored on their non-American competitors. This is short -sighted and will ultimately stifle innovation.
The other approach is to build a regulatory framework that cultivates just and free global competition. By allowing international players like Tether to compete alongside American transmitters, the United States can promote a dynamic ecosystem where the best ideas and technologies reach the summit. Competition is what would stimulate excellence.
There is a perpetrated myth that only American issuers support their tokens with sufficient reserves, attest to these reserves and take the necessary measures to prevent money laundering and terrorist funding. It’s just not true. TETHER, the largest stall transmitter, helped apply American law and more than 230 law enforcement agencies in 50 countries to block $ 2.5 billion in illegal activities in the world. The reality is that the transmitters responsible for Stablecoin exist inside and outside the United States (Tether, which is based in Salvador, represents more than half of the stable market.)
Too restrictive regulations could also turn against the American economy. If the legislation legislation stimulates businesses abroad in the United States, this could lead to a drop in demand for American treasury bills, a weakened dollar domination and a less competitive stablecoin space.
The congress is held at an important crossroads – “two divergent roads” as Robert Frost wrote. He could enter this moment to develop a regulatory framework that defends competition and transparency, or he could take the narrow road by adopting a protectionist approach and stifling innovation. The diversity of the market is not a bug to be corrected. It is a feature to exploit.
It is time to make a careful choice because the issues could not be higher. Let us ensure that we get things correctly for the future of finance.
