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US weighs initiative to promote dollar-backed stablecoins overseas
The plan would use government-private joint ventures to expand stablecoin circulation abroad, aimed at bringing more users to dollar payments and more buying for U.S. Treasuries.
Washington is reportedly considering an initiative to promote dollar-backed stablecoins overseas through government and private-sector joint ventures, according to Decrypt, citing a Bloomberg report and people familiar with the plans.
The outlet says the concept is intended to reinforce the dollar’s role as a reserve asset by keeping foreign users tied to dollar-linked digital payments, while also generating new demand for U.S. Treasury debt.
Decrypt reports that the stablecoins would be structured to maintain a 1:1 value with a currency using reserves, typically cash and short-term government debt. It also notes that the GENIUS Act, a federal stablecoin law signed last year, already requires issuers to back each token with reserves like cash and short-dated Treasuries.
According to Decrypt, multiple federal agencies could be involved, including the Treasury Department, the State Department, and the U.S. International Development Finance Corp. The article adds that stablecoin issuers already hold close to $200 billion in Treasury bills, a figure the administration would presumably like to increase.