Tether Stablecoin Could Potentially Support U.S. Debt Reduction, Suggests Treasury Secretary Bessent

  • U.S. Treasury Secretary Scott Bessent highlights the potential of stablecoins to significantly reduce the national debt by increasing demand for U.S. Treasury bonds.

  • With stablecoins projected to reach up to $3.7 trillion by 2030, legislative support like the GENIUS Act could accelerate their growth and impact on the digital economy.

  • According to COINOTAG, Bessent describes this development as a “win-win-win” scenario benefiting the private sector, Treasury, and consumers alike.

Stablecoins could drive U.S. debt reduction by boosting Treasury bond demand, with market growth supported by the GENIUS Act and projected to reach trillions by 2030.

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U.S. Treasury Secretary Scott Bessent recently emphasized the growing influence of stablecoins on the national debt landscape. As stablecoins are primarily backed by U.S. Treasury bonds, their expansion directly increases demand for these government securities. This heightened demand can lead to lower borrowing costs for the U.S. government, as it reduces the interest rates paid on issued bonds. Over time, this mechanism could contribute to a meaningful reduction in the national debt burden. The relationship between stablecoins and Treasury bonds creates a symbiotic dynamic where the digital currency market supports government financing, while the government provides a stable foundation for these digital assets.

The recent passage of the GENIUS Act by the U.S. Senate marks a pivotal step toward establishing a clear regulatory framework for stablecoins. This legislation aims to provide legal certainty and safety for stablecoin issuers, fostering innovation while protecting consumers and the financial system. Citi’s report projects the stablecoin market could expand to as much as $3.7 trillion by 2030 under favorable conditions, with a conservative estimate of $1.6 trillion. Treasury Secretary Bessent anticipates that U.S.-based stablecoins alone could surpass $2 trillion by 2028 if supported by such regulatory clarity. This growth trajectory underscores the importance of legislative support in unlocking the full potential of stablecoins within the broader financial ecosystem.


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Source: https://en.coinotag.com/tether-stablecoin-could-potentially-support-u-s-debt-reduction-suggests-treasury-secretary-bessent/