Are stablecoin issuers becoming key buyers of US Treasuries as foreign governments pull back?
Treasury Secretary Scott Bessent spoke at Ripple’s Swell conference on October 27th. He said that digital assets could reinforce the dollar’s global position. What he’s really saying is that stablecoin issuers buy treasuries in a world where foreign governments are buying less treasuries, meaning that stablecoin issuers are probably the best and most reliable buyer of United States treasuries going forward. People now have easy access to dollars where they want them all over the world to get out of their own hyperinflating currency, to avoid their own political problems. That creates more demand for the dollar. So it funds the US Treasury and helps with hyper dollarization all over the world. There’s an irony in this by the way because Bitcoin was created to be a hedge against exactly that. And perhaps the best use case of the technology is to spread dollar and fiat all over the world.
#Stablecoins #Treasuries
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