US reportedly considers stablecoin ventures to expand dollar dominance

The Donald Trump administration is reportedly considering joint ventures with private firms to promote dollar-backed stablecoins overseas. People familiar with the plans said the initiative would seek to expand dollar use and create more buyers for US Treasuries. Francis Brooke said stablecoin issuers already hold close to $200 billion in Treasury bills. The administration would presumably like that amount to increase. The Treasury Department could participate in the initiative. The State Department could also participate. The US International Development Finance Corp. could also participate. The GENIUS Act requires issuers to back every token with reserves such as cash and short-dated Treasuries. Treasury Secretary Scott Bessent has previously described stablecoins as a way to reinforce the dollar's global role. Stablecoins can support remittances and dollar-priced purchases for people abroad. China has floated a digital yuan. The European Central Bank is advancing a digital euro. BRICS countries are exploring similar possibilities. China has officially banned stablecoins. European Central Bank President Christine Lagarde has opposed euro-denominated stablecoins as a strategy to expand the euro's global reach.