Financial expert Scott Bessent discusses the impact of stablecoins on global demand for the dollar and U.S. Treasury securities.
Potential Impact of Stablecoins on the Dollar
Bessent noted that if the U.S. fully embraces stablecoins, it could significantly increase global demand for dollars and U.S. Treasuries, reinforcing the dollar’s status as the world’s reserve currency. 'If we really went big into stablecoins in this country, it could have a huge effect on the strength of the dollar,' Bessent said.
Regulation of the Crypto Industry in the U.S.
Scott Bessent also added that while the Biden administration’s early approach to crypto regulation pushed many digital asset firms offshore, the current Trump-aligned administration has made digital assets a clear priority, aiming to regulate rather than eradicate the industry.
Forecasts for Treasury Demand
According to Bessent, applying high U.S. regulatory and anti-money laundering (AML) standards to stablecoins could open the door to an estimated $2 trillion in short-term demand for U.S. Treasury securities—a significant surge from today’s estimated $300 billion demand tied to existing stablecoins. This forecast underscores the growing consensus that properly regulated stablecoins could be a strategic financial instrument—not only for innovation but also for supporting fiscal sustainability in a fragmented monetary landscape.
The integration of stablecoins into the U.S. financial system could have a significant impact on the economy, and many experts believe it opens new avenues for growth.
