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Senator Patrick Toomey and Fed Chairman Jerome Powell raised a really important question. Can stablecoins and the Fed's digital dollar be on the same horizon and coexist?
The senator is not sure about the purpose of using stablecoins or the same traditional retail banks, especially for a long time. He also believes that the digital dollar can replace fiat in commercial banks in the future.
Senator Toomey is sure that if Congress at the legislative level, as well as the Fed, put the digital dollar into use, it will lead to an extraordinary furore and people will refuse to use stablecoins, and over time they may become irrelevant at all.
Eswar Prasad, professor of economics at Cornell University, is confident that the digital dollar will not be able to coexist. If the digital US dollar is available in everyday use and covers all the needs of Americans, then they will not use stablecoins.
Although he noticed that stablecoins, which are issued by giant companies, may still be in demand, especially among users of these corporations. The digital dollar and stablecoins will be used.
Stablecoins can be in great demand for conducting transactions on the Internet and withdrawing cryptocurrencies to them. Many critics believe that stablecoins can cause trouble for the US economy and be a threat to monetary policy. However, experts parry this judgment, they are sure that stablecoins are pegged to the dollar and are completely legal.
Unlike the digital dollar, stablecoins are already very progressive and they really focus their attention on technological aspects, allow for the conversion of cryptocurrencies into stablecoins, and are also intermediaries between crypto exchange traders.
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