U.S. Senator Bill Hagerty has warned of growing efforts by BRICS nations to bypass the U.S. dollar’s dominance but argued this could ultimately strengthen the status of the dollar as the world’s reserve currency. He emphasized the need for a regulatory framework to boost demand for U.S. treasuries and stablecoins, while his stablecoin legislation aims to counter current cryptocurrency policies and reinforce the dollar’s global role.

Senator Claims BRICS’ Push to Abandon US Dollar Might Strengthen USD’s Power

U.S. Senator Bill Hagerty (R-TN), a member of the Senate Banking and Foreign Relations Committees and former U.S. Ambassador to Japan, commented on BRICS’ efforts to reduce reliance on the U.S. dollar and the importance of maintaining the dollar’s role as the global reserve currency, particularly as countries like Russia and BRICS members attempt to bypass its dominance.

“You think about the efforts that Vladimir Putin and these BRICS nations undertaking to get around the United States as the reserve currency of the world,” he said in an interview with Fox Business, adding:

This will actually strengthen our posture as a reserve currency. It will increase demand, not only for U.S. treasuries, but also the stablecoins will increase demand for U.S. dollars on a global basis.

The senator stressed: “We need the proper regulatory framework in place here in America—we need legal certainty.”

In addition to shoring up the dollar’s global role, Hagerty pointed out that his stablecoin legislation would counter what he described as the current administration’s harmful policies on cryptocurrency. The lawmaker stated:

This will begin to chip away at the Democrats’ war on cryptocurrency and put us back in the driver’s seat when it comes to maintaining the reserve currency status that the dollar has enjoyed and should continue to enjoy.

Hagerty expressed confidence that his bill would advance, particularly under a future administration, stating: “The assumption is very clear that this legislation will move through and be ripe for a new Administration.” Hagerty’s stablecoin bill, in his view, not only addresses immediate concerns about global currency competition but also reaffirms the long-term dominance of the U.S. dollar by providing regulatory clarity and strengthening the nation’s financial infrastructure.

Source : Bitcoin News - Oct 24, 2024