US Tries to Boost Dollar Stablecoins Amid Global Rivalry
The US Treasury, State Department, and possibly the US International Development Finance Corporation are exploring a plan to promote dollar-backed stablecoins globally through public-private partnerships.
This initiative aims to boost America's Treasuries and maintain the dollar's global dominance. However, challenges such as regulatory actions by other nations and the risk of bank deposit flight could hinder its success.
A 2026 survey by Visa found that the number of Americans willing to use stablecoins rose from 36% to 56%, mainly due to increased anti-fraud mechanisms and insurance policies. The stablecoin market cap currently stands at $306.5 billion, with Tether's USDT dominating at 59.83%.
Rival nations such as China and the European Central Bank (ECB) are already pushing for similar moves with their digital yuan (e-CNY) and the digital euro. China has taken aggressive measures to promote the stablecoin, including mandating banks to pay interest and conduct lending and borrowing using the digital yuan.