U.S. Treasury Secretary predicts: stablecoin market capitalization could reach $2 trillion, boosting demand for U.S. bonds

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U.S. Treasury Secretary: Market capitalization of stablecoins may reach $2 trillion, boosting demand for U.S. Treasury bonds

The U.S. Treasury Secretary recently stated at a Senate hearing that the market capitalization of stablecoins pegged to the dollar could surge to $2 trillion in the coming years. He emphasized that the government is taking steps to strengthen the dollar's status as the global reserve currency, support legislation to further integrate stablecoins into the financial system, and establish strict regulations to ensure they are fully backed by short-term government debt such as Treasury bonds.

The finance minister believes that the prediction of $2 trillion is not unrealistic. He stated: "I think this is a fairly reasonable figure, and the actual scale could far exceed this level." He anticipates that as the application of stablecoins in everyday transactions increases, stablecoins backed by U.S. debt will expand the global influence of the dollar and stimulate demand for U.S. government bonds, which aligns with broader fiscal goals.

Finance Minister Scott Bessenet predicts that dollar-backed stablecoins will reach $2 trillion

Meanwhile, Congress is moving forward with new stablecoin legislation. The Senate has passed a key procedural vote, and the final bill is expected to pass as early as next week. The bill has received support from some lawmakers and major cryptocurrency lobbying groups. Prior to this, the relevant committee in the House of Representatives had passed a broader cryptocurrency bill.

Retailers have shown strong support for this technology, hoping that stablecoins can provide them with alternative payment solutions to reduce the long-standing issue of high credit card processing fees. However, there are differences of opinion within the banking industry. Small banks warn that stablecoins may siphon deposits away from the traditional banking system, affecting loan availability and everyday credit channels. Meanwhile, large banks are exploring the creation of their own stablecoins to control customer funds and earn interest from reserves.

The Treasury Secretary emphasized that as long as these stablecoins are fully backed by U.S. government debt, the demand for the dollar both domestically and internationally will become even stronger. He stated that despite analysts predicting an additional $1 trillion in stablecoin purchases by the U.S. Treasury by 2030, the government sees greater potential. "This is not just a possibility, it is a goal we are actively working to achieve," he said.

This bill is a priority for the government. The chairman of the relevant Senate committee confirmed that hearings will be held on broader cryptocurrency regulation legislation, but the bill may not pass until the fall. Senate leadership has indicated that it will work to pass this stablecoin bill soon and urged the House of Representatives to act swiftly.

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GateUser-aa7df71evip
· 19h ago
The bull run is here, suckers get ready to charge.
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MEVVictimAlliancevip
· 19h ago
Is the US debt doomed at only 20 trillion?
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MetaNomadvip
· 19h ago
USDC is powerful!
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rug_connoisseurvip
· 19h ago
Playing is healthier
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GweiWatchervip
· 19h ago
Another round of explosions is here...
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rugged_againvip
· 19h ago
Is that it? Exactly the same as ust.
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