There is growing anxiety on both sides of the aisle that tech mogul Elon Musk may enter the stablecoin industry, according to recent conversations in Congress.
The House Committee on Financial Services has expressed concern that the forthcoming legislation may give major digital corporations the ability to create their own stablecoins, expanding those firms’ already substantial influence in our daily lives.
During the discussion, one of the biggest points of contention was the possibility that Musk’s newly renamed company, X, might become a worldwide payments provider by issuing stablecoins.
Musk purchased what was once known as Twitter last year and renamed it “X.” According to the company’s new CEO, Linda Yaccarino, the service plans to evolve from a microblogging site into a central location for all forms of communication and commerce.
The platform will undergo significant overhauls as outlined by Yaccarino and Musk, who wants to turn it into a “global marketplace for ideas, goods, services, and opportunities.” Incorporating monetary transactions into the network is central to Musk’s plan, which would be strengthened by his possible entrance into stablecoin issuance.
Representative Maxine Waters, the committee’s leading Democrat, and Representative Ralph Norman, the committee’s top Republican, both expressed concern. They were concerned that the law wouldn’t do enough to stop major software firms like Twitter X or retailers like Amazon from creating their own stablecoins.
This follows the decision of Meta (previously Facebook) to abandon its cryptocurrency initiative, Diem, because of pushback from policymakers. Diem was introduced as Libra in 2019 with the intention of serving as a stablecoin, however, the project was shut down earlier this year due to regulatory resistance and other problems.
The story of Diem serves as a sobering reminder of the intricacy and regulatory hurdles inherent in such endeavours, reigniting anxieties about the growing domination of such firms in our everyday lives.
Also Read: ‘Protect the value of your crypto’ by contacting lawmakers, says Coinbase’s Brian Armstrong
