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U.S. Representative Ritchie Torres (D-N.Y.) has expressed his belief that the amalgamation of blockchain technology and stablecoins could enhance financial services for impoverished Americans. In a post on X, Torres underscored the necessity for appropriate regulation in implementing blockchain and stablecoins.
Torres stated, "Blockchain facilitates real-time transactions. Stablecoins digitize the dollar. The combination of blockchain and stablecoin—if properly regulated—has the potential to create a better, cheaper, and faster payment system for the lowest-income Americans. Both the public and private sector have a duty to figure out how to harness the potential of emerging technologies in the service of financial empowerment."
According to his website, Torres is a Bronx native who serves on both the House Financial Services Committee and the Subcommittee on Digital Assets, Financial Technology and Inclusion.
Investopedia defines stablecoins as a form of cryptocurrency that is pegged to a fiat currency like the U.S. dollar or to commodities such as gold. This makes them less volatile compared to other types of cryptocurrencies.
A report from the World Bank indicates that approximately 1.4 billion people worldwide are "unbanked," meaning they lack bank accounts or access to traditional financial tools. This group often includes women, individuals living in poverty or remote areas, or those with minimal education.
Last year, Torres suggested on X that cryptocurrency could benefit economically disadvantaged individuals by enabling them to "make payments & remittances without long delays and high fees."
U.S. Representative Patrick McHenry (R-N.C.), chairman of the House Financial Services Committee, introduced legislation titled 'Clarity for Payment Stablecoins Act' earlier this year. According to a press release, this bill provides a regulatory framework for stablecoin issuers aimed at supporting innovation while protecting consumers. The committee voted to advance the bill in July.
