In an open letter addressed to Vice President Kamala Harris and former President Donald Trump both of whom are now running for presidency, Charles Cascarilla, CEO and Co-Founder of Paxos, has asked the top contenders to pay attention to US dollar-backed stablecoins.
“Blockchain and digital assets are re-platforming the financial system to operate on the internet in a safe, secure and transparent way,” he said.
“Stablecoins or digital dollars – U.S. dollars digitized via blockchain technology – are the crucial upgrade for the payment system that will revolutionize money movement, allow greater participation in the global economy and ensure the supremacy of the U.S. dollar for years to come.”
Stablecoins are cryptocurrencies pegged to stable assets like the US dollar, reducing volatility. They offer blockchain benefits with currency stability, useful for transactions, remittances, and storing value in the digital economy.
The CEO warned that the next presidential administration will play a pivotal role in determining whether the U.S. can maintain its status as a leader in the global financial industry or risk becoming the “Rust Belt of financial services.”
Cascarilla highlights the stark contrast between the rapidly evolving global economy and the outdated American financial system, which he describes as “closed, inefficient, and operating at the speed of the post office.”
With approximately 20% of the U.S. population and 40% of the global population either unbanked or underbanked, he emphasizes the urgency of rethinking the industry’s approach to financial inclusion.
The letter points to the remarkable adoption of smartphone technology—95% of Americans and 70% of the global population—indicating a significant opportunity for the financial sector to innovate.
With more people possessing smartphones than bank accounts, Cascarilla asserted that this is the moment to leverage technology to enhance transparency and efficiency in financial transactions.
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Reflecting on the treatment given to Paxos by the US government, Cascarilla noted that the U.S. has become increasingly inhospitable to financial innovation.
He cited numerous instances of regulatory overreach and unnecessary legal challenges that have hindered the growth of the industry, compelling firms like Paxos to seek clarity and opportunity outside U.S. borders.
In the midst of this hostility, he warned that international jurisdictions like Singapore and the UAE, which have quickly embraced blockchain technology, are signs that the U.S. risks losing its competitive edge.
He emphasized that without a supportive regulatory environment, capital, jobs, and expertise will migrate to countries that offer clearer and more constructive policies for digital assets.
He called on bipartisan collaboration in addressing these challenges. He advocated for the development of a stablecoin framework that fosters innovation while asserting U.S. leadership in the digital asset space. Such reforms are deemed essential for the future of American finance and the preservation of its economic vitality.
