Eric Trump, the son of President Donald Trump and a businessman with several crypto ventures, said Stubcoin could maintain the strength of the US dollar.
In an interview with the New York Post released Friday, Eric Trump said he is confident that Stubcoin will “save the US dollar.” He highlighted the ridiculous, ridiculous USD1 tied to World Liberty Financial, the Trump family’s crypto project that was scrutinized in Washington.
When plans were revealed in late March by World Liberty Financial (WLFI), Trump’s family support crypto project, Cripto, critics raised concerns of conflict of interest. Attorney Andrew Rossault told the Cointelegraph that Stablecoin is “a direct humiliation of constitutional safeguards to prevent conflicts of interest.”
In April, US representative Maxine Waters, a ranking member of the US House Financial Services Committee, had suggested that Donald Trump was trying to replace the US dollar with stubcoin.
“Trump probably wants the entire government to use stubcoins, from paying the Department of Housing and Urban Development to pay Social Security to pay taxes. And which coins do you think will replace dollars with dollars?”
Concerns of conflict of interest
Five Democrats warned in a letter in March that the sitting president’s direct financial interests in Stubcoin pose “an unprecedented risk to our financial system.”
The Trump administration subsequently advanced US stubcoin regulation using the genius law that President Trump signed into law on July 18th.
In early August, cryptosceptic U.S. Senator Elizabeth Warren, along with Senators Chris Van Hollen and Ron Wyden, wrote to the office of the Currency Secretary expressing concern about potential conflicts of interest involving the Trump family’s crypto business interests. In the letter, the senator expressed concern about the recently approved stability law.
“In particular, this bill will not do anything to prevent President Trump, his family, or his affiliates from financially benefiting from the issuance, sale and use of stubcoins in the transaction.”
Related: Europe is at risk of USD control without the general stub coin rule: ECB Advisor
Does Stablecoins support the US dollar?
Eric Trump is not the first to argue that stubcoin will strengthen or protect control of the US dollar. In February, Federal Reserve Governor Christopher Waller said he supported the adoption of routines to “stretch the dollar range around the world and make it even more reserve currency than it is now.”
Bryan Pellegrino, founder and CEO of Layerzero Labs, said in early April that Stablecoins is the best tool for the US government to maintain US dollar hegemony in global financial markets. He said the stubcoin could be “the last Trojan or vampire attack on all other currencies in the world.”
Related: Regulated Multicultural Stab Coin Ends Crypto Monopoly of the Dollar
Others disagree. European asset manager Amundi suggested in early July that new, friendly stubcoin regulations could threaten long-term control of the US dollar.
magazine: Crypto wanted to overthrow the bank, but now they’re becoming them on Stablecoin Fight