US Ponders Overseas Push for Dollar-Backed Stablecoins

The US government is considering a plan to promote dollar-backed stablecoins overseas as part of its efforts to reinforce the US dollar's position as the world's reserve currency. The Treasury Department, State Department, and US International Development Finance Corporation could be involved in joint ventures with private companies to back stablecoin projects.

According to Bloomberg, the US and UK are working more closely together on this initiative. This move is seen as a response to other countries developing their own digital payment systems, such as China's digital yuan in Project mBridge.

Senior US officials have repeatedly tied stablecoin growth to the dollar's global standing. Treasury Secretary Scott Bessent said the GENIUS Act, which set up a federal framework for payment stablecoins, could strengthen the dollar's status as the global reserve currency and generate 'potentially trillions of dollars' in new demand for US government debt.

The rulemaking process for the GENIUS Act has been ongoing since August 17, with the Treasury Department issuing a notice of proposed rulemaking that asked for public comment on rules covering the issuance, offering, and sale of payment stablecoins.