Founder of StraitsX: The US dollar will eventually lose dominance in the stablecoin market – Bits Media

Aymeric Sully (Aymeric Salley) considers, that stablecoins, governed by Singapore law, have advantages over US-issued stablecoins.

The head of the company issuing stablecoins SGD XSGD backed by the Singapore dollar in an interview with Blockworks expressed an opinion, that most stablecoins
are backed by the US dollar not because, что нет спроса на стейблкоины, обеспеченные валютой других стран, а из-за отсутствия альтернатив. He added, что компания StraitsX не считает, что текущее состояние репрезентативно для рыночного спроса, rather, it is a consequence of the lack of reliable and compatible alternatives, denominated in other fiat currencies.

"We believe, that other stablecoins will appear, denominated in many fiat currencies, and ultimately the US dollar will provide 50% or less of the total value of stablecoins in circulation".

According to the expert, so that the value of SGD does not affect the financial system, Singapac record
pursues a policy of counteracting its globalization. On the other hand, the city-state has an electronic licensing system, which could lead to widespread international adoption of an SGD-based stablecoin.

Sally clarified, that XSGD is licensed under the Payment Services Act of Singapore, which, among other things, defines and licenses digitized money. Thanks to the electronic license, StraitsX can issue XSGD, in this case, the local bank takes full responsibility for the money, providing stablecoin. This is in stark contrast to the US, where stablecoin legislation is vague and unclear, and the largest stablecoin issuer Tether often clashes with regulators due to the uncertainty of its reserves.

Information appeared today, that the next US Treasury SEC report will indicate regulation of the stablecoin market. Considering the SEC's attitude towards stablecoins, Hard times are coming for the stablecoin market. Major politicians in the US also have an unfavorable view of stablecoins. A month ago, US Senator Cynthia Lummis said, that stablecoins should be backed by fiat currency and issued by banks. Earlier, the IMF called on governments of all countries to globally regulate stablecoins.