Peter Schiff Sparks Debate Over Stablecoins and Treasury Bonds

Key Points

1. Peter Schiff argued that stablecoins do not create new demand for U.S. Treasury bonds but merely shift existing liquidity, potentially disrupting the supply-demand balance.

2. Critics countered that when investors buy stablecoins like USDC, issuers purchase Treasury bonds to back reserves, effectively creating new bond demand.

3. Schiff's views are seen as speculative by some, especially given the U.S. government's supportive stance on stablecoins under the Trump administration.

4. The debate highlights differing perspectives on whether stablecoin inflows translate to genuine new demand for Treasury bonds or just reallocation of existing capital.