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US recognizes role of stablecoins as collateral and economic boost
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The United States Department of the Treasury recently recognized the importance of stablecoins in the digital financial landscape. In a report released this week, the organization highlighted how stablecoins, especially those linked to fiat currencies, have been playing a fundamental role in transactions between cryptocurrencies and in the United States economy.
For the Treasury, the use of stablecoins intensifies as the digital asset market matures. Furthermore, the Treasury stated that the trend is for them to continue to grow, mainly as collateral for loans in decentralized finance (DeFi) networks.
These cryptocurrencies, backed by the US dollar, attract more and more investors and financial institutions, who seek security and stability.
The Treasury estimates that around $120 billion in stablecoins are currently invested in short-term US Treasury bonds, consolidating them as important buyers of public debt. This strategy benefits the country’s economy and reinforces the so-called “redolarization”. In other words, the preference for dollar-backed assets as a means of preserving value in times of uncertainty.
US ‘surrenders’ to stablecoins
The report points out that more than 80% of all cryptocurrency transactions include stablecoins as one of the elements of the transaction. Among the most popular examples of stablecoins on the market are USDT and USDC, issued by Tether Limited and Circle, respectively, both backed by the dollar.
The choice of these stablecoins as transaction intermediaries is because they offer a low-risk alternative for users, especially in the DeFi sector, where they are widely used for smart contracts and lending operations.
The growing adoption of stablecoins also raises important regulatory questions. The US Treasury states that regulation must accompany the growth of these private currencies, avoiding possible risks to financial stability.
However, the body recognizes that stablecoins have the potential to strengthen the financial system, as long as they are properly regulated.
In the coming years, the US government is expected to intensify efforts to monitor and regulate the use of these cryptocurrencies, aiming to ensure that they continue to act as stable elements within the digital financial ecosystem without compromising economic security.
US recognizes role of stablecoins as collateral and economic boost
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US recognizes role of stablecoins as collateral and economic boost
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US recognizes role of stablecoins as collateral and economic boost
