Trump administration weighs a global stablecoin plan to cement dollar's dominance
Washington is a mulling plan to actively promote USD-backed stablecoins worldwide in a bid to cement the greenback's global reserve status.
Washington is looking to leverage stablecoins to cement the U.S. dollar’s stature as the premier global reserve currency.
According to Bloomberg, the Trump administration is considering a plan involving joint ventures with private players to promote the use of dollar-backed stablecoins overseas. The aim is to boost the dollar’s dominance and source demand for U.S. Treasury notes.
Treasury and State Departments could play key roles in promoting U.S. dollar stablecoins globally, alongside the U.S. International Development Finance Corporation.
Under the U.S. Genius Act law, stablecoin issuers are required to hold reserves including dollars and short-term Treasuries. Treasury Secretary Scott Bessent recently described dollar-backed stablecoins as a tool supporting the dollar’s dominance, noting that the dollar accounts for nearly 90% of the foreign exchange transactions.