Congresswoman Maxine Waters, a leading figure on the House Financial Services Committee, has expressed serious reservations about PayPal’s recent launch of its Paypal USD (PYUSD) stablecoin. Stablecoins are digital tokens that are linked to the value of other assets, like the US dollar. Waters raised concerns that there is no set of rules in place at the federal level to control and supervise these types of digital assets.
Stablecoins have been around for a while, but they’re not yet widely used for everyday transactions. PayPal, a massive payment company, just introduced its own stablecoin called PayPal USD (PYUSD).
However, Maxine Waters is worried because there’s no clear national structure to manage these new digital money forms, which she believes could put consumers at risk. She asserts that the Federal Reserve should be in charge of overseeing these coins to make sure everyone is protected and that the financial system stays stable.
Why Waters is Worried About PayPal’s Stablecoin (PYUSD)
PayPal is gigantic, with a staggering 435 million customers globally. That’s more users than all the big banks combined, according to Congresswoman Maxine Waters’ statement. Because of this massive reach, the politician thinks it’s super important for the government to watch over PayPal’s stablecoin activities to make sure everything is safe and fair.
According to her,
“Given PayPal’s size and reach, Federal oversight and enforcement of its stablecoin operations is essential in order to guarantee consumer protections and alleviate financial stability concerns.”
Last month, the House Financial Services Committee, where Waters holds a prominent position, put forward a bill. This bill aims to create rules for stablecoins, like PYUSD, and how they can operate.
Interestingly, Waters didn’t like this bill, and she’s not alone in her concerns. She argued that this bill would actually weaken the Federal Reserve’s power and control over these coins, making it harder to prevent problems like inflation or job losses.
In essence, Congresswoman Maxine Waters wants the government to have strong control over these new types of digital money, especially since they could have a big impact on how we handle our finances in the future.
While many think that this control would guarantee stability and safeguard the economy from potential risks and disruptions, it also carries some risks that could ultimately jeopardize effective growth in the crypto industry.
