Catherine Coley is the CEO of Binance.US. Previously she was Head of XRP Institutional Liquidity at Ripple after working for Morgan Stanley Foreign Exchange desks in Hong Kong and London.
Amid the fear and uncertainty of the COVID-19 pandemic, the US government is looking for ways to financially support Americans as soon as possible, even discussing the possibility of universal basic income payments. People need help. At the same time, they need to stay home to reduce the risk of contracting the virus. In delivering emergency payments, the government should be aware of the risks of asking people to pick up money at a bank or another physical location. It should distribute any stimulus package in a way that’s sterile, efficient and accessible.
The government needs to look for ways to innovate the antiquated process of distributing checks by mail. In the interests of speed and safety, why not consider sending the stimulus in the form of stablecoins as a means to verify the transfer of assets? Because stablecoins can be distributed digitally, Americans would have immediate access to their funds, alleviating the need to spend hours at a bank to cash a check while removing oneself from a self-imposed quarantine.
Because the digital asset space is new and relatively unknown outside the cryptocurrency community, there would, of course, be some pushback to this idea. A lack of understanding often translates into a lack of trust. Education should go hand-in-hand with distribution. Both government and citizens would need to be informed about how stablecoins work, how users exchange them into fiat money, and why they could potentially make money transfers easier in the future.
The advantages of using stablecoins are numerous. For starters, with digital assets, recipients do not need to own a house or even have a mailbox to receive them.
Digital assets also prevent counterfeiting or…