US: "We will use stablecoins to secure dollar reserve currency status"

The Trump administration has decided to use Stable Coins to strengthen the status of the US Dollar as the world's reserve currency. Stable Coins are pegged to the US Dollar, making them an alternative that can help maintain the value of the US Dollar. Stable Coins are required to hold reserves, which can be in the form of US Treasuries and cash. Treasury Secretary Scott Vesenthe said at the White House's first 'Digital Crypto Summit' that, as directed by President Trump, the US will ensure that the US Dollar remains the world's dominant reserve currency, and that Stable Coins will be utilized for this purpose. Increased demand for Stable Coins will inevitably lead to increased demand for US Treasuries. This can serve as an alternative to offset any potential selling of US Treasuries by China or other countries, thus supporting the US Dollar. The US Treasury estimated that around $120 billion worth of US Treasuries are being used as collateral for Stable Coins, which is similar to the amount of US Treasuries held by South Korea. David Saxe, who oversees the Trump administration's AI and cryptocurrency policies, stated in a press conference last month that Stable Coins have the potential to internationally guarantee the dominance of the US Dollar, and that passing Stable Coin regulation legislation is a priority for the administration. There are currently Stable Coin-related bills introduced in Congress by senators close to President Trump, such as Bill Hagerty. The bills aim to establish a regulatory framework to facilitate the use of Stable Coins. President Trump expressed his strong support for the efforts of lawmakers working on bills to provide regulatory certainty for Stable Coins and the digital asset market, which he sees as a 'tremendous opportunity' for the growth and innovation of the US financial sector. He hopes the bills will be passed before Congress' August recess so that he can sign them into law. Trump also reiterated his stance, saying 'Never sell Bitcoin', and that he plans to explore ways, in cooperation with the Treasury and Commerce Departments, to hold more Bitcoin without using taxpayer money, and that any seized digital assets will be held as new reserves.