Brian Brooks, a partner at Valor Capital Group and former CEO of Binance.US, said in an interview with CNBC that stablecoins can help people in hyperinflationary countries access dollar-denominated products. However, he argued that the US government should create a regulatory framework that allows stablecoins to operate with transparency and oversight:
Citizens in high-inflation countries are really strongly in demand for dollar-denominated products to keep their money safer after they’ve earned it. In many countries where you cannot have a dollar-denominated bank account, stablecoins are the best solution for you.
Brooks, who also served as the US Currency Controller under the Trump administration, said that regulation of stablecoins would benefit both consumers and the global dominance of the US dollar:
If the US government had created a framework that allowed the dollar to support stablecoins in a regulated way, that demand would have grown even more. That would be fine for the global adoption of the dollar, but as long as we allow governments to suppress stablecoins, you have a kind of push-pull phenomenon, which is what’s causing the problem.
He added that stablecoins are not about cryptocurrencies, but about the role the US plays in the financial system.