U.S. Treasury Secretary’s Views on Stablecoins
U.S. Treasury Secretary Scott Bessent expressed a strong belief that global consumers will favor stablecoins over central bank digital currencies (CBDCs). In a recent Bloomberg interview, he highlighted the innovative nature of the stablecoin landscape, which he described as an “exciting new payment rail.”
Demand for U.S. Treasuries
Bessent underscored the potential for increased demand for U.S. Treasuries as a result, arguing that consumers would rather invest in stablecoins backed by U.S. Treasuries and adhering to American regulatory standards than in CBDCs issued by entities like the European Central Bank or the People’s Bank of China.
Concerns About Privacy and Oversight
He noted the significant concern about privacy and government oversight, pointing out that a government could intervene and disable a CBDC following unfavorable public comments.
Advocacy for the GENIUS Act
Bessent is currently advocating for the House of Representatives to adopt the Senate version of the GENIUS Act intact, a bill that he believes could be passed by mid-July. This proposed legislation mandates that stablecoin issuers back their tokens on a 1:1 basis with various types of reserves, which may include U.S. currency and Treasury securities.
The Senate had previously endorsed the bill last month, setting the stage for its potential approval in the House.
