U.S. Treasury Secretary Scott Bessent forecasts that virtual assets will play a crucial role in bolstering the dollar’s global dominance. The proliferation of dollar-based stablecoins could also drive up demand for U.S. Treasury bonds.
On Tuseday, CoinDesk reported that Secretary Bessent, speaking at Ripple’s Swell conference, emphasized how virtual assets will underpin America’s technological edge and the dollar’s hegemony.
Bessent explained that while military might once determined a reserve currency’s influence, technological prowess will be the key factor moving forward. It will triumph in the digital asset technology ecosystem, he declared, and this victory will further cement the U.S. dollar’s position.
He particularly stressed that dollar-based stablecoins could expand the greenback’s usage in emerging markets. For nations grappling with currency devaluation or rampant inflation, stablecoins could offer a fresh avenue to access dollars.
The Treasury Secretary noted that over 90% of all stablecoins are dollar-based, with issuers holding U.S. Treasury bonds and other assets as reserves. As the stablecoin market expands, he anticipates a corresponding increase in demand for U.S. Treasury bonds, potentially making them a pivotal funding source for the Treasury.
Addressing the regulatory landscape for virtual assets, Bensent expressed disappointment over the failure to pass the CLARITY Act. However, he remained optimistic, suggesting that the Treasury could collaborate with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to develop a robust regulatory framework.