China is devoting significant resources to creating an alternative to the dollar payments system. To counter this push, American policymakers should support private firms issuing stablecoins, which can ensure demand for US government debt and boost the greenback’s global standing and reach.
WASHINGTON, DC – Imagine a world where China has supplanted the United States atop the world economy, and the renminbi, not the greenback, is the global reserve currency. This scenario would be disastrous for US citizens, businesses, and allies. Given America’s record high debt and unsustainable spending, reduced demand for dollar assets would cripple the US economy. The government would be forced to cut public services and military expenditures, altering almost every facet of American life – and not for the better.
WASHINGTON, DC – Imagine a world where China has supplanted the United States atop the world economy, and the renminbi, not the greenback, is the global reserve currency. This scenario would be disastrous for US citizens, businesses, and allies. Given America’s record high debt and unsustainable spending, reduced demand for dollar assets would cripple the US economy. The government would be forced to cut public services and military expenditures, altering almost every facet of American life – and not for the better.