US Treasury Secretary Scott Bessent stated that stablecoins could help solidify the dollar's global position. His statement comes after a significant Senate vote on the GENIUS bill.
Stablecoins and the Dollar
Scott Bessent noted that stablecoins could become the largest buyers of government debt, thus reinforcing dollar dominance. He emphasized, "Stablecoins could reinforce dollar supremacy because stablecoins could end up being one of the largest buyers of U.S. Treasurys." Bessent also pointed out that digital assets are one of the most important phenomena that have been ignored by national governments for too long.
GENIUS Legislation
Bessent's comments come in the wake of the Senate's passage of a crucial stablecoin bill. Congress must now decide whether to support the Senate's version or propose its own before the GENIUS Act can reach the President's desk.
Prospects of the Stablecoin Market
With major companies like JPMorgan, Apple, and Walmart poised to enter the stablecoin market, many experts believe the US dollar-backed stablecoin market could grow into trillions of dollars. Bessent predicted that the stablecoin market could hit $3.7 trillion by the end of the decade.
Such developments underscore the increasing attention towards stablecoins as a vital component of the US financial ecosystem, which could impact the dollar's prevailing position in the global economy.
