The United States is considering a public-private partnership to promote dollar-backed stablecoins abroad to support U.S. Treasury bond demand, amid fiscal debt exceeding $40 trillion. Dollar-backed stablecoins, primarily USDT and USDC, now hold over $220 billion in Treasury bonds, with Tether alone holding over $140 billion, making it the 17th largest U.S. Treasury holder. JPMorgan analysts estimate growth could be limited to around $500 billion due to bank resistance to stablecoin yields, rather than the projected $2 trillion by 2028. The European Union and China are opposing this strategy, promoting respectively the Digital Euro and the Digital Yuan.
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