Former House Speaker Paul Ryan has called on US lawmakers to promote dollar-backed stablecoins, arguing that adopting this technology will make US debt more attractive in international markets and counter China's growing influence in digital currency. In an opinion piece published in the Wall Street Journal, Ryan emphasized the need for a "sound, predictable regulatory framework for stablecoins" in the United States.

Ryan's call to action comes as China has already embraced digital dollar technology through its e-yuan central bank digital currency. While the e-yuan has struggled to gain popularity among everyday citizens, Ryan warns that the US cannot afford to sit idly by as its largest international competitor taps into the demand for safe and convenient digital money.

The former Speaker of the House notes that China and Saudi Arabia, historically large purchasers of American debt, are increasingly looking for options to settle payments outside the dollar system. By promoting stablecoins, Ryan believes the US can make its debt more attractive and maintain its economic influence.

Ryan's endorsement of stablecoins is notable, given his role on the Policy Council of crypto-focused VC firm Paradigm. However, he took care to distinguish between China's digital financial infrastructure and dollar-backed stablecoins issued on public, permissionless blockchains, emphasizing the importance of American values like freedom and openness.

Ryan's call for a bipartisan effort to craft a regulatory framework for stablecoins comes at a critical time, as the US navigates its response to China's growing digital currency ambitions. With the 2024 Presidential race heating up, crypto policy has become a key issue, with Biden administration officials and former President Trump expressing support for keeping crypto companies onshore.

In conclusion, Paul Ryan's endorsement of stablecoins highlights the need for the US to embrace digital currency technology to maintain its economic influence and counter China's growing ambitions. By promoting dollar-backed stablecoins, the US can make its debt more attractive, support American values, and ensure its continued leadership in the global economy.