This is how we protect US dollar dominance in the digital age

Fox News

21-03-2025

History will record Washington's embrace of digital assets this year as an inflection point for the next era of U.S. dollar dominance. Both the Trump administration and Congress are prioritizing an America First approach to the blockchain, ensuring we are the ones defining how these new digital assets are used, traded and created at home and abroad.
Our opportunity now is to ensure that we shape this trend to serve American businesses and families. If the dollar is to be the currency of the digital age, then Washington must act to make that happen.
The good news is that durable, bipartisan progress is emerging. The Senate Banking Committee just advanced first-of-its-kind legislation for one key part of the blockchain ecosystem – stablecoins – in a landslide 18-6 vote. The House appears ready to follow with its version.
This congressional push reflects a shared national imperative for economic and technology competitiveness. Stablecoins are digital dollars that move securely, instantly and freely on blockchain networks. These are not cryptocurrencies like Bitcoin that have significant price volatility. Stablecoins are fully reserved assets, meaning their value is always pegged one-for-one with the U.S. dollar.
Stablecoins are also a key tool in modernizing the dollar for the digital age by making all types of transactions cheaper, safer and more efficient. If regulated properly, they can cement the U.S. dollar as the most widely used currency for the fast-growing internet financial system – enshrining American economic strength for the next generation in the process. President Trump said as much at the Blockworks Digital Assets Summit, calling on Congress to pass "common-sense" legislation and affirming dollar-backed stablecoins will "unleash an explosion of economic growth, and … expand the dominance of the U.S. dollar."
This shift in U.S. financial policy toward the blockchain may seem sudden, but it has been years in the making, dating back to when I served in the first Trump administration. And it reflects the structural trend of digitization that has already reshaped every sector aside from finance over the past few decades.
As White House AI and crypto czar David Sacks explained, "Financial assets are destined to become digital like every other analog industry has become digital and we want that value creation to happen in the United States."
The Office of the Comptroller of the Currency (OCC) recently reinforced this shift by announcing that national banks can issue and process stablecoins, marking a major step toward integrating these digital dollars into the traditional banking system.
This move legitimizes stablecoins as a core component of the U.S. financial infrastructure and provides regulated institutions with clarity to operate in this market. Importantly, stablecoins can serve this role only if they are subject to clear federal rules about reserves, transparency, one-for-one redeemability – key features that inspire trust.
Thankfully, the bills moving in both houses of Congress are promising. Any good law would ensure that consumers are shielded from tokens masquerading as payment stablecoins that do not adhere to U.S. rule of law and oversight.
Stablecoin issuers should be required to publicly disclose their reserves and be open to independent audits to confirm those disclosures. And we should also ensure that American companies compete on a level playing field with offshore issuers and are incentivized to build and grow here in the U.S.
The strength of the U.S. dollar is not just a matter of national pride – it has tangible benefits for American businesses and families. A dominant and stable dollar means lower borrowing costs for businesses and homeowners, as global demand for dollar-denominated assets helps keep interest rates lower. It also translates into dramatically more efficient point-of-sale for merchants, reducing costs for retailers and consumers.
A strong dollar helps curb inflation by making imports more affordable, ensuring that American households retain more of their purchasing power. When the dollar remains the global standard, American workers and businesses benefit from easier access to capital and trade opportunities, reinforcing U.S. economic leadership.
The effort to futureproof the U.S. dollar for the digital age is a rare issue that resonates across the political spectrum. For Republicans, it strengthens U.S. innovation and competitiveness against global adversaries. For Democrats, it represents an opportunity to modernize financial infrastructure, promote economic inclusion, and ensure strong consumer protections.
Both sides recognize that a well-regulated stablecoin framework can reinforce the dollar's role in global finance while safeguarding economic security at home.
Stablecoins are not just a technological breakthrough; they represent an evolution in the very fabric of global finance. If harnessed correctly, they will secure the dollar's preeminence for generations to come.
With strategic vision and regulatory clarity, the U.S. can seize this opportunity and ensure that the dollar remains the anchor of the international monetary system in the digital age. This could be another legacy moment for President Donald Trump and congressional leaders.