Crypto News Review, a publication that reports on the latest news regarding crypto and blockchain, recently published a contributed article by Daniel Popa, the CEO and founder of Anchor.
The world as the USA knows it could change in the blink of an eye, as the national debt keeps growing by the minute. The rate at which the government is spending its funds is not sustainable. What’s more, it calls for a drastic solution.
Although it’s probably tempting to resolve the issue of the national debt by simply printing out more money, this would then lead to inflation. Ultimately, it would depreciate the US dollar, making it nearly worthless. Also, raising the taxes to pay off the debt wouldn’t help much either, not according to the example Greece has set at least. Not only would increasing the taxes anger the citizens, but it would leave the core issue as is. If the government keeps on spending more money that it has, the debt will continue to grow.
Could stablecoins help?
One possible solution could lie in using stablecoins. Yet, both fiat and crypto markets are facing a similar issue. In theory, stablecoins would be a much better solution to a fiat currency. After all, they offer stability. However, for a stablecoin to truly be stable, it has to be pegged to a financial index that won’t become the victim of market volatility. Right now, most of them are pegged to either another cryptocurrency or to the US dollar. That leaves much to be desired given that volatility would not be off the table.
Still, there is a light at the end of this dark tunnel. A stablecoin pegged to a non-volatile peg of value, such as the global economy, could very well be just what the doctor ordered.
To learn more about the US debt and all the possible solutions, read the entire article here.