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US weighs support for dollar-backed stablecoin projects overseas
The reported plan would use joint ventures with private firms and multiple agencies, with the goal of expanding international demand that could lift purchases of US Treasurys.
The US government is reportedly considering an overseas push to promote the use of dollar-backed stablecoins, as part of efforts to reinforce the dollar’s role as a global reserve currency, according to Cointelegraph citing Bloomberg.
Citing people familiar with the plans, Bloomberg said the initiative could involve joint ventures between private-sector companies and federal agencies, including the US Treasury, the State Department, and the US International Development Finance Corporation, with an emphasis on expanding the international use of dollar-denominated stablecoins.
The same reporting notes the potential impact on demand for US Treasurys, a common reserve asset backing many dollar-backed stablecoins, and that the push comes as other countries build digital payment and cross-border settlement infrastructure.
Cointelegraph also reported that it reached out to the US Treasury, the DFC, and several US-based stablecoin companies for comment but did not receive a response before publication.