Insiders revealed that the Trump administration is reviewing a plan to establish joint ventures with private institutions to promote dollar-backed stablecoins overseas. The plan aims to enhance the dominance of the U.S. dollar and create demand for U.S. Treasury securities.
Stablecoins are blockchain-based digital tokens whose value is pegged to external reference assets such as the U.S. dollar. They are widely regarded as tokenized versions of fiat currencies and are primarily used for cryptocurrency transaction financing and cross-border payments. Currently, the world's two largest stablecoins, USDT and USDC, are both pegged to the U.S. dollar at a 1:1 ratio, collectively accounting for nearly 90% of the total market capitalization of $292.49 billion in stablecoins.
Analysts point out that while this plan may strengthen the U.S. dollar, it could also pose serious risks to emerging economies with current account deficits that are vulnerable to capital outflows. Since stablecoins can transfer funds via blockchain, bypassing traditional banking channels, it becomes more difficult for central banks and governments to monitor and influence capital flows. If dollar-backed stablecoins are widely used in daily transactions, domestic fiat currencies may face significant pressure.(rc)
