Tesla CEO Elon Musk is a familiar face in the cryptocurrency world. Now there are rumors that it will enter the stablecoin space. However, this potential raises bipartisan concern in Congress.
Elon Musk makes a sound with cryptocurrency moves!
This development comes after the House of Representatives Financial Services Committee voiced concerns that upcoming legislation could allow major tech companies to issue their own stablecoins, thereby increasing their impact on our lives.
A key concern raised during the discussion was the scenario that X, which was recently rebranded after being acquired by Musk, could establish itself as a global payments provider through stablecoin issuance. cryptocoin.com As you follow, Elon Musk bought Twitter last year. This year, it changed its name to X and turned it into a new brand. As new CEO Linda Yaccarino notes, it aims to go beyond a microblogging platform. Thus, it aims to transform into an all-encompassing communication and financial center.
The changes Yaccarino and Musk propose for the platform reflect their desire to create a “global marketplace for ideas, goods, services and opportunities.” Musk’s potential venture into stablecoin issuance further solidifies his vision of integrating financial operations into the platform.
Musk’s moves caused concern in the USA!
California Representative Maxine Waters, the leading Democratic member of the committee, and Republican Representative Ralph Norman of South Carolina are worried about the latest developments. There is no clear ban in US legislation to prevent big tech companies like Twitter X or retail companies like Amazon from issuing their own stablecoins. Representatives also expressed their concerns about this situation.
Meta shelves cryptocurrency project
Meanwhile, Meta, formerly Facebook, has shelved cryptocurrency project Diem. The opposition of policy makers was effective in this decision. Now, it followed that Representatives voiced their concerns. Meta intended for Diem, which was launched as Libra in 2019, to serve as a stablecoin. But after several setbacks and constant opposition from regulators, the project finally came to an end earlier this year.
Other big tech companies have the potential to issue their own stablecoins. This has rekindled fears that such companies will dominate our daily lives even more. The Diem case is a reminder of the complexity and regulatory challenges inherent in such initiatives.
