U.S. Senator Bill Hagerty has raised concerns over the growing efforts by BRICS nations to reduce their reliance on the U.S. dollar. However, he believes this could inadvertently reinforce the dollar’s standing as the world’s reserve currency. Hagerty, who is also a member of the Senate Banking and Foreign Relations Committees, emphasized the importance of establishing a regulatory framework to promote the use of U.S. treasuries and stablecoins, which would help secure the dollar’s global dominance.
BRICS and the U.S. Dollar: Strengthening or Weakening Its Role?
Speaking in a recent interview with Fox Business, Hagerty highlighted the actions of countries like Russia and other BRICS members, which are looking to bypass the U.S. dollar in global trade. Despite these efforts, Hagerty argued that such moves could backfire, ultimately increasing global demand for U.S. assets.
“You think about what Vladimir Putin and the BRICS nations are doing to avoid using the U.S. dollar,” he said. “This will actually strengthen our posture as a reserve currency. It will drive more demand for U.S. treasuries and stablecoins, thereby increasing the demand for U.S. dollars globally.”
Hagerty stressed the need for a solid regulatory framework in the U.S., adding that “legal certainty” is crucial for ensuring the dollar’s continued dominance in the international financial system.
Stablecoin Legislation to Bolster the Dollar’s Global Role
Hagerty’s efforts also extend to the realm of digital currencies. He expressed concern over current cryptocurrency policies, which he views as detrimental to U.S. financial interests. To counter this, Hagerty has introduced legislation focused on stablecoins—digital assets designed to maintain a stable value tied to the U.S. dollar.
His stablecoin bill, he explained, aims to reverse what he calls the “Democrats’ war on cryptocurrency.” According to Hagerty, the legislation is designed to restore the U.S. as a leader in the global financial landscape while ensuring the long-term dominance of the dollar.
“This legislation will help secure our place as the leader in the world’s reserve currency,” Hagerty said. He added that he expects the bill to gain momentum, especially under a future administration that may be more receptive to his regulatory vision.
In conclusion, Hagerty believes that a well-structured regulatory approach to stablecoins, combined with a focus on strengthening U.S. financial infrastructure, will not only combat efforts by BRICS nations to sideline the dollar but also ensure that it remains the cornerstone of global finance.
