U.S. Treasury Secretary Scott Bessent has proposed that stablecoins, particularly Tether (USDT), could play a significant role in reducing the national debt by increasing demand for U.S. Treasury bonds.
Secretary Bessent highlighted that stablecoins, primarily backed by U.S. Treasury securities, create substantial demand for these government bonds. This increased demand has the potential to lower borrowing costs for the U.S. government and contribute to national debt reduction efforts.
The recently enacted GENIUS Act provides a crucial regulatory framework for stablecoins. Projections based on this framework suggest the stablecoin market could grow exponentially, reaching an estimated $3.7 trillion by 2030.
Beyond debt management, Bessent emphasized that stablecoins bolster the U.S. dollar’s position in the global digital economy. They integrate more participants worldwide into a dollar-based financial system.
The current stablecoin market is valued at approximately $255 billion, dominated by Tether (USDT) and USD Coin (USDC). Secretary Bessent characterized the growth trajectory of stablecoins as a ‘win-win-win’ scenario, benefiting the private sector, the Treasury Department, and consumers.