How Dollar Power is Reallocated When Stablecoins Become Financial Weapons

U.S. Treasury Secretary Scott Basset should have a new nickname. I once gave him one, calling him “BBC.” Although his radical actions are reshaping the global financial system, this title still does not fully capture the impact he has brought. I believe a more fitting title is needed to describe the shock he will cause in two key areas: the Euro-Dollar banking system and foreign Central Banks.

Just like the serial killer in the movie “The Silence of the Lambs” — this classic work is worth a late-night watch for any newcomer — Scott “Buffalo Bill” Bessenet is preparing to reshape the euro-dollar banking system and take control of foreign non-dollar deposits. In ancient Rome, slaves and elite legions maintained the “Pax Romana”; in modern times, the dollar's hegemony sustains the “Pax Americana.” The “enslavement” in Pax Americana does not only refer to the African slaves transported to the Americas in history, but in today's form, it is about repaying debts every month — several generations of young people voluntarily take on heavy debts just to obtain worthless diplomas, hoping to work in top institutions like Goldman Sachs, Sullivan & Cromwell, or McKinsey. This form of control is broader, more covert, and effective. Unfortunately, with the development of artificial intelligence, these heavily indebted groups may face the risk of unemployment.

This article will discuss the control of the US dollar over global reserve currencies under “American Peace”. Successive US Treasury Secretaries have had varying degrees of effectiveness in wielding the dollar as a financial instrument. The most notable failure has been the inability to prevent the formation of the euro-dollar system.

The Eurodollar system emerged in the 1950s and 1960s, originally aimed at circumventing U.S. capital controls (such as the Q regulations), avoiding economic sanctions (the Soviet Union needed a channel to hold dollars), and providing banking services for non-U.S. trade flows during the global economic recovery after World War II. At that time, monetary authorities could have recognized the demand for dollars to be provided to foreign entities and allowed major financial institutions in the U.S. to take on this business, but domestic political and economic considerations forced them to adopt a hardline stance. As a result, the Eurodollar system continued to expand over the following decades, developing into a financial force that could not be ignored. It is estimated that the scale of Eurodollar deposits circulating in branches of non-U.S. banks globally is between $10 trillion and $13 trillion. The movement of these capitals has triggered multiple financial crises in the post-war period, each requiring money printing to stabilize the market. In August 2024, a paper published by the Atlanta Federal Reserve titled “Offshore Dollars and U.S. Policy” analyzed this phenomenon.

For “Buffalo Bill” Bessent, there are two main problems with the euro-dollar system. First, he knows almost nothing about the scale of euro-dollars and the use of these funds. Second, and more crucially, these euro-dollar deposits have not been used to purchase the low-quality U.S. Treasury bonds he holds. So, is there a way for Bessent to address both of these issues simultaneously? Before answering, let's briefly review the foreign exchange holdings of non-U.S. retail depositors.

De-dollarization does exist. It began to accelerate significantly in 2008 when American financial leaders chose to rescue banks and financial institutions facing bankruptcy due to misguided bets with unlimited quantitative easing (QE Infinity), rather than allowing them to fail naturally. An effective indicator of how global Central Banks respond to holding trillions of dollars in dollar-denominated assets is the proportion of gold in their foreign exchange reserves. A higher proportion of gold in reserves indicates lower trust in the US government.

As can be observed, since the financial crisis of 2008, the proportion of gold in the reserves of various Central Banks has hit bottom and rebounded, beginning a long-term upward trend.

This is the TLT US ETF, which tracks US Treasuries with maturities of 20 years and above, dividing its price by the price of gold. I have indexed it to 100 starting from 2009. Since 2009, the value of US Treasuries relative to gold has nearly fallen by 80%. The monetary policy of the US government is to rescue its banking system while sacrificing domestic and foreign creditors. It is no wonder that foreign Central Banks are starting to hoard gold like Scrooge in “DuckTales”. US President Trump also intends to adopt a similar strategy, but he believes that in addition to targeting bondholders, he can also impose tariffs on foreign capital and trade flows to “Make America Great Again.”

Besenet actually finds it difficult to persuade the reserve managers of various countries' Central Banks to purchase more government bonds. However, there is a large group of underbanked individuals in the Global South who are eager to have a positively yielding dollar account. As you know, all fiat currencies are trash compared to Bitcoin and gold. But within the fiat currency system, the dollar remains the best choice. Domestic regulators, who dominate most of the global population, force their citizens to hold high-inflation inferior currencies and limit their access to the dollar financial system. These individuals would buy government bonds offered by Besenet just to escape their poor domestic bond markets. So, does Besenet have a way to provide banking services to these people?

My first trip to Argentina was in 2018, and since then I have returned almost every year. This chart shows the ARS/USD index since September 2018 (with a baseline of 100). Over seven years, the Argentine peso has depreciated by 97% against the dollar. Now when I go there, I spend most of my time skiing, and I pay all the service staff with USDT.

“Buffalo Bill” Besant has found a new tool to solve his problem—that is, dollar-pegged stablecoins. The U.S. Treasury is now promoting the development of these stablecoins, and the Empire will support specific issuers to help them consolidate the euro-dollar system and retail deposits from the Global South. To understand this, I will first briefly introduce the structure of the “acceptable” dollar-pegged stablecoins, then discuss their impact on the traditional banking system. Finally, and most importantly for the crypto community, I will explain why the global promotion of dollar-pegged stablecoins supported by Pax Americana will drive the long-term growth of decentralized finance (DeFi) applications.

What is an “acceptable” stablecoin?

Dollar-pegged stablecoins are similar to narrow banks. The issuer accepts dollars and invests those dollars in risk-free bonds. In nominal dollar terms, the only risk-free bond is U.S. Treasury bonds. Specifically, since the stablecoin issuer must be able to provide physical dollars when holders redeem, they will only invest in short-term Treasury bills (T-bills), which are Treasury bonds with a maturity of less than one year. With almost no duration risk, its trading behavior is almost equivalent to cash.

For example, Tether USD (USDT):

1. Authorized Participant (AP) transfers US dollars to Tether's bank account.

2. Tether creates 1 USDT for every 1 dollar deposited.

3. In order to generate returns from these dollars, Tether will purchase Treasury bills (T-bills).

For example: If AP deposits 1,000,000 USD, they will receive 1,000,000 USDT. Tether uses this 1,000,000 USD to purchase an equivalent amount of T-bills. USDT itself does not pay interest, but these T-bills actually pay the Federal Reserve funds rate, which is currently around 4.25%~4.50%. Therefore, Tether earns a net interest margin (Net Interest Margin, NIM) of 4.25%~4.50%.

In order to attract more deposits, Tether or related financial institutions (such as cryptocurrency exchanges) will pay a portion of the NIM to users who are willing to stake USDT. Staking means locking USDT for a period of time in exchange for interest earnings.

The redemption process for stablecoins is as follows:

1. The Authorized Participant (AP) sends USDT to Tether's cryptocurrency wallet.

2. Tether sells the corresponding T-bills based on the dollar amount corresponding to USDT.

3. Tether transfers 1 dollar corresponding to each USDT into the bank account of AP.

4. Tether destroys the corresponding USDT, removing it from circulation.

Tether's business model is very simple: receive US dollars, issue digital tokens on a public blockchain, invest the US dollars in T-bills, and earn a net interest margin (NIM).

Bessent will ensure that the stablecoin issuers supported by the Empire's tacit approval can only deposit dollars in chartered U.S. banks or invest in Treasury bonds. There will be no “fancy” operations.

Impact of the Euro-Dollar System

Before the emergence of stablecoins, the Federal Reserve System (Fed) and the Treasury always stepped in to rescue when there were issues with Eurodollar banking institutions. A well-functioning Eurodollar market is crucial for the overall health of the empire. However, now Bessent has a new tool to absorb these capital flows. At the macro level, he must provide a compelling incentive for Eurodollar deposits to be tokenized.

For example, during the 2008 global financial crisis, the Federal Reserve secretly provided billions of dollars in loans to foreign banks that were short of dollars due to the collapse of subprime mortgages and related derivatives. As a result, Eurodollar depositors generally believed that the U.S. government implicitly guaranteed their funds, even though technically they were outside the U.S. regulatory framework. If it were announced that non-U.S. bank branches would not receive assistance from the Federal Reserve or the Treasury in future financial crises, Eurodollar deposits would be funneled into the arms of stablecoin issuers. If you think this is an exaggeration, a strategist at Deutsche Bank publicly questioned whether the U.S. would use dollar swap tools to force Europe to comply with the demands of the Trump administration. There is no doubt that Trump was very eager to undermine the Eurodollar market by effectively “debanking” it—these institutions had “debanked” his family business after his first term, and now is the time for payback. Retribution, indeed, is cruel.

Without guarantees, Euro and US dollar depositors will, in their own interest, transfer funds into dollar-pegged stablecoins like USDT. Tether's assets are all held in the form of US bank deposits or Treasury bills (T-bills). Legally, the US government guarantees all deposits of eight “too big to fail” (TBTF) banks; after the regional banking crisis in 2023, the Federal Reserve and the Treasury effectively guaranteed all deposits at US banks or branches. The default risk on T-bills is almost zero because the US government will never voluntarily go bankrupt — it can always print dollars to repay bondholders. Therefore, stablecoin deposits are risk-free in nominal dollars, whereas Euro and US dollar deposits are no longer so.

Soon, the issuers of dollar-pegged stablecoins will迎来 a capital inflow of $10 to $13 trillion, and subsequently purchase T-bills. Stablecoin issuers will become large, price-insensitive buyers of the government bonds issued by Bessent!

Even if Federal Reserve Chairman Powell continues to obstruct Trump's monetary agenda, unwilling to lower the federal funds rate, end the balance sheet reduction, or restart quantitative easing, Bessent can still offer T-bills at rates below the federal funds rate. He is able to do this because stablecoin issuers must purchase his products at the given rates to make a profit. In a few steps, Bessent has taken control of the front end of the yield curve. The continued existence of the Federal Reserve is meaningless. Perhaps in some square in Washington, there will stand a statue of Bessent, styled after Cellini's “Perseus with the Head of Medusa”, named “Bessent and the Head of the Jekyll Island Monster”.

Impact of the Global South

American social media companies will become Trojan horses, weakening foreign Central Banks' ability to control the currency supply for their ordinary citizens. In the Global South, the penetration rate of Western social media platforms (Facebook, Instagram, WhatsApp, and X) is almost comprehensive.

I have lived in the Asia-Pacific region for half of my life. In the region, converting depositors' local currency into US dollars or dollar-equivalent assets (such as Hong Kong dollars) in order for funds to earn US dollar yields and invest in US stocks is an important part of investment banking business.

The local currency management authority implements a “whack-a-mole” style regulation on traditional financial institutions (TradFi) to block capital outflows. The government needs to control the funds of ordinary people and to some extent wealthy individuals with close non-political relationships, in order to absorb funds through inflation tax, support underperforming state-owned enterprises, and provide low-interest loans to heavy industries. Even if Bessent wants to use major financial center banks in the U.S. as a starting point to provide banking services to those in desperate need of funds, local regulators have prohibited this practice. However, there is another more effective way to access these funds.

Almost everyone is using Western social media companies. What if WhatsApp launched a cryptocurrency wallet for every user? Within the app, users could seamlessly send and receive approved dollar-pegged stablecoins (like USDT). What would happen if this WhatsApp stablecoin wallet could also transfer to any wallet on different public chains?

Provide a fictional case to illustrate how WhatsApp offers digital dollar accounts to billions of users in the Global South:

Fernando is Filipino and runs a click farm in the countryside, creating fake followers and views for social media influencers. Since his clients are all outside the Philippines, receiving payments is both difficult and expensive. WhatsApp has become his primary payment tool as it provides a wallet for sending and receiving USDT. His clients also use WhatsApp and are willing to stop using the inefficient banking system. Both parties are satisfied with this arrangement, but it effectively bypasses the local Philippine banking system.

After a while, the Central Bank of the Philippines noticed a massive outflow of bank funds. They realized that WhatsApp had widely promoted dollar-pegged stablecoins domestically, and the Central Bank had effectively lost control over the money supply. However, they were almost powerless. The most effective way to stop Filipinos from using WhatsApp would be to cut off the internet. Even attempts to pressure local Facebook executives were futile. Mark Zuckerberg ruled Meta from his sanctuary in Hawaii and received approval from the Trump administration to promote stablecoin features for Meta users globally. Any internet legal restrictions on American tech companies would provoke threats from the Trump administration to raise tariffs. Trump had explicitly threatened the European Union with higher tariffs if it did not repeal its 'discriminatory' internet legislation.

Even if the Philippine government removes WhatsApp from the Android and iOS app stores, determined users can easily bypass the blockade through VPNs. Of course, any friction will affect usage, but social media has essentially become an addictive substance for the masses. After more than a decade of continuous dopamine stimulation, the general public will find any way to continue using the platform.

Finally, Bessent can use sanctions as a means. Asian elites naturally do not want to devalue their wealth through their own country's monetary policy, as they store their wealth in overseas dollar bank centers. Do as I say, not as I do. Suppose Philippine President Bongbong Marcos threatens Meta, Bessent can immediately retaliate by imposing sanctions on him and his close associates, freezing their billions of dollars in overseas wealth unless they yield and allow stablecoins to spread in their country. His mother, Imelda, is well aware of how long the arm of U.S. law can reach, as she and her late dictator husband, Ferdinand Marcos, faced RICO charges for misappropriating Philippine government funds to purchase real estate in New York. It can be certain that Bongbong Marcos does not want to go through another round of turmoil.

If my argument is correct, that stablecoins are the core tool of Pax Americana for expanding the use of the U.S. dollar, then the empire will protect American tech giants from local regulatory backlash while providing dollar banking services to the general public. The governments of these countries are almost powerless against this.

If my judgment is correct, what is the total addressable market (TAM) for potential stablecoin deposits from the Global South? The most advanced group of countries in the Global South is the BRICS. Excluding China, as it has banned Western social media companies. The question is, what is the scale of local currency bank deposits? I consulted Perplexity, and the answer it provided is $4 trillion. I know this may be controversial, but I think it is reasonable to include the countries in the “Euro Poverty Zone” that use the euro. The euro is already “on its last legs” under the economic policies prioritizing Germany and France, and the Eurozone will eventually be split. With future capital controls, by the end of this century, the only practical use of the euro may be to pay for entry to Berghain and the minimum consumption at Shellona.

Adding the European bank deposits of $16.74 trillion to the calculation, the total is close to approximately $34 trillion, which means the potential market for stablecoin deposits is extremely large.

Go all out, or be taken down by the Democratic Party

Buffalo Bill Bessent faces a choice: either go all out or let the Democrats win. Does he want the red team to win in the 2026 midterms and, more importantly, in the 2028 presidential election? I believe he hopes so, and the only way to achieve this goal is to support Trump in providing more benefits to the general public than Mamdanis and AOCs. Therefore, Bessent needs to find a buyer for government bonds who doesn’t care about the price. Clearly, he thinks stablecoins are part of the solution, as evidenced by his public support for this technology. But he must go all in.

If the Global South, the Eurozone's impoverished areas, and Europe's Eurodollars do not flow into stablecoins, he must use his “heavy-handed means” to force the funds to flow in. This means either flowing into the US dollar as required or facing sanctions again.

● The purchasing power of government bonds generated by dismantling the Eurodollar system: $10–13 trillion.

● Retail deposit purchasing power in the Global South and Eurozone poverty areas: $21 trillion.

● A total of approximately 34 trillion dollars.

Clearly, not all funds will flow into dollar-pegged stablecoins, but at least we can see a huge potential addressable market. The real question is, how will this $34 trillion in stablecoin deposits drive DeFi usage to new heights? If there is good reason to believe that DeFi usage will grow, which crypto projects will benefit the most?

The Logic of Stablecoin Inflow into DeFi

The first concept to understand is staking. Let's assume that part of the $34 trillion exists in the form of stablecoins. To simplify, we will assume all inflows go into Tether's USDT. Due to intense competition from other issuers like Circle and large TBTF banks, Tether must share part of its net interest margin (NIM) with holders. They do this by partnering with some exchanges to allow USDT staked in exchange wallets to earn interest, which is paid out in the form of newly issued USDT.

For example:

Fernando from the Philippines holds 1000 USDT. The Philippine exchange PDAX offers a 2% staking return. PDAX creates a staking smart contract on Ethereum. Fernando sends 1000 USDT to the smart contract address, and then the following occurs:

1. His 1,000 USDT became 1,000 psUSDT (PDAX staked USDT, PDAX's liabilities). Initially, 1 USDT = 1 psUSDT, but as interest accumulates daily, psUSDT gradually appreciates. For example, using a 2% annual interest rate and simple interest calculated with ACT/365, psUSDT grows by about 0.00005 each day. After 1 year, 1 psUSDT = 1.02 USDT.

2. Fernando received 1,000 psUSDT to his exchange wallet.

A powerful thing has happened: Fernando locked USDT in PDAX in exchange for an interest-generating asset, psUSDT. psUSDT can now be used as collateral in the DeFi ecosystem, exchanged for other cryptocurrencies, utilized for collateralized lending, and traded in leveraged derivatives on DEX.

A year later, if Fernando wants to exchange psUSDT back to USDT, he only needs to unstake on the PDAX platform, psUSDT will be burned, and he will receive 1020 USDT. The additional 20 USDT interest comes from the cooperation between Tether and PDAX. Tether creates extra USDT from the NIM earned through the treasury bond portfolio, paying PDAX to fulfill contract obligations.

Therefore, USDT (base currency) and psUSDT (yield-bearing currency) have both become acceptable collateral in the DeFi ecosystem. This way, a portion of the overall stablecoin flow will enter DeFi applications (dApps). Total Value Locked (TVL) is used to measure this interaction. Users must lock their funds when operating in a DeFi dApp, and this portion of funds is reflected as TVL. TVL is a leading indicator of trading volume and future revenue, as well as an important basis for predicting future cash flow of DeFi dApps.

Model Assumptions

I choose to predict until the end of 2028 because that is when Trump leaves office. My baseline assumption is that the probability of the blue team (Democrats) winning the presidency is slightly higher than that of the red team (Republicans). The reason is that Trump, in less than four years, will not be able to completely correct the losses caused by the long-term influence of half a century of monetary, economic, and foreign policy on his supporters. Worse still, no politician will fully deliver on their campaign promises. Therefore, the voter turnout of red team supporters will decline.

The grassroots voters of the red team lack enthusiasm for Trump's successor and will not appear in sufficient numbers at the polls, thus being surpassed by the childless cat lady blue team voters affected by Trump Derangement Syndrome (TDS). Any member of the blue team that comes to power will implement unfavorable monetary policies due to TDS, just to prove they are different from Trump. However, ultimately no politician can resist printing money, and dollar-pegged stablecoins become the best indifferent price buyers of short-term government bonds. Therefore, while the new president may not initially fully support stablecoins, they will soon realize that the lack of this capital will make it difficult to progress, ultimately continuing the aforementioned policies. This policy fluctuation will trigger the bursting of the crypto market bubble, leading to an epic bear market.

Moreover, the figures in my model are enormous. This is a once-in-a-century transformation of the global monetary system. Unless we undergo lifelong intravenous stem cell injections, most investors may never encounter a similar event again. The potential returns I predict will far exceed SBF's amphetamine habit. Driven by the popularity of dollar-pegged stablecoins, the bull market of the DeFi ecosystem will be unprecedented.

Because I like to use decimal numbers ending in zero for predictions, I estimate that by 2028, the total circulation of USD-pegged stablecoins will reach at least $10 trillion. This enormous figure is due to the extremely large and exponentially growing deficit that Bessent must finance. The more Bessent finances with government bonds, the faster the debt accumulates, as he must roll over the debt every year.

The next key assumption is what level Bessent and the new Federal Reserve Chair after May 2026 will set the federal funds rate at. Bessent has publicly stated that the federal funds rate is too high by 1.50%, while Trump often calls for a 2.00% cut. Considering that policies often overshoot, I believe the federal funds rate will ultimately land quickly at around 2.00%. This figure has no strict basis; like institutional economists, we are all making improvisational judgments, so my number is as reliable as theirs. Political and economic realities require the empire to provide cheap funding, and a rate of 2% perfectly meets this demand.

Finally, my forecast for the 10-year Treasury yield: Bessent's target is to achieve a 3% real growth, plus a 2% federal funds rate (theoretically representing the long-term inflation level), resulting in a 10-year yield of about 5%. I will use this yield to calculate the present value of the terminal cash flows.

As more people start using stablecoins to buy coffee, they naturally hope to earn interest. I mentioned earlier that issuers like Tether will distribute part of the net interest margin (NIM) to coin holders, but this amount is not significant; many savers will seek higher returns without taking on too much additional risk. So, is there endogenous yield within the crypto capital market that new stablecoin users can capture? The answer is yes, Ethena offers opportunities for higher yields.

In the cryptocurrency capital market, there are only two ways to safely lend funds: lending to speculators for derivative trading or lending to cryptocurrency miners. Ethena focuses on lending to speculators, hedging long crypto positions by shorting crypto/USD futures and perpetual swaps. This is the strategy I referred to as “cash and carry” when promoting at BitMEX. I later wrote an article titled “Dust on Crust,” calling for entrepreneurs to package this trading into synthetic USD and high-yield stablecoins. After reading the article, Ethena's founder Guy Young assembled a top team to put it into practice. Maelstrom subsequently became the founding advisor. Ethena's USDe stablecoin quickly accumulated about $13.5 billion in deposits within 18 months, becoming the fastest-growing stablecoin, currently ranking third in circulation, behind Circle's USDC and Tether's USDT. Ethena's growth is so rapid that by next St. Patrick's Day, it will become the second-largest stablecoin issuer after Tether, leaving Circle CEO Jeremy Allaire to drink a Guinness to ease his worries.

Due to the counterparty risk of exchanges, the interest rate for speculators borrowing USD to go long on crypto assets is usually higher than the yield on government bonds. When I created perpetual contracts with the BitMEX team in 2016, I set the neutral interest rate at 10%. This means that if the perpetual contract price is equal to the spot price, the longs will pay the shorts an annualized interest rate of 10%. Every perpetual contract exchange designed after BitMEX adopted this 10% neutral interest rate. This is important because 10% is well above the current federal funds rate ceiling of 4.5%. Therefore, the yield on staked USDe is almost always higher than Fed Funds, providing new stablecoin holders willing to take on a small amount of additional risk with an opportunity to earn nearly double the yield offered by Buffalo Bill Bessent.

Now, civilians can earn more interest income, the question is: how can they trade their way out of the poverty caused by inflation?

One of the worst effects of global currency depreciation is that it forces everyone to become a speculator in order to maintain their standard of living — if they don’t already have a large pile of financial assets. As more people who have long been affected by the arbitrary depreciation of fiat currencies start saving on-chain through stablecoins, they will trade the only asset class that gives them a chance to escape poverty through speculation — cryptocurrencies.

The theory that DEX will consume all other types of exchanges is not new, but what sets Hyperliquid apart is the execution of the team. Jeff Yan has assembled a team of about ten people, whose product iteration speed and quality surpass any centralized or decentralized team in the industry.

The simplest way to understand Hyperliquid is to think of it as a decentralized version of Binance. Since Tether and other stablecoins primarily support Binance's funding channels, Binance can be seen as the predecessor of Hyperliquid. Hyperliquid also completely relies on stablecoin infrastructure for deposits but offers an on-chain trading experience. With the launch of HIP-3, Hyperliquid is rapidly transforming into a permissionless derivatives and spot giant. Any application that wishes to have a high liquidity limit order book and achieve real-time margin management can integrate the required derivatives market through HIP-3.

I predict that by the end of this cycle, Hyperliquid will become the largest cryptocurrency exchange, and the growth of stablecoin circulation reaching $10 trillion will further accelerate this development. Taking Binance as an example, we can predict Hyperliquid's average daily trading volume (ADV) based on the level of stablecoin supply.

“Buffalo Bill” Bessent's Strategy

Bessent, known as “Buffalo Bill,” controls global Eurodollar and non-dollar deposits, depending on the fiscal policy of the U.S. government. I believe that Bessent's boss — President Trump — has no intention of cutting spending or balancing the budget. His only goal is to win the election. Political winners in late capitalist democracies secure votes through the distribution of benefits. Therefore, Bessent will take significant action in the fiscal and monetary fields, and no one can stop him.

As the US deficit continues to widen and Pax Americana's global hegemony weakens, the market is unwilling to hold weak dollar-denominated debt. Bessent's use of stablecoins to absorb government bonds has become an inevitable means.

He will widely use sanctions to ensure that the US dollar stablecoin absorbs funds flowing out from Eurodollars and non-US retail banks. At the same time, he will mobilize tech giants (such as Zuckerberg and Musk) to promote stablecoins, making them popular among global users, and even if local regulations do not allow it, they will be protected by the US government.

If my judgment is correct, we may see the following trends:

1. The offshore dollar market (Eurodollar) is under regulatory scrutiny;

2. The dollar swap line between the Federal Reserve and the Treasury is linked to U.S. tech companies entering the digital market;

3. The issuer of stablecoins must hold US dollars or government bonds;

4. Encourage stablecoin issuers to go public in the United States;

5. American technology companies are adding cryptocurrency wallet features to social media applications;

6. The Trump administration is supportive of the use of stablecoins.