Debate Arises Over Stablecoin Impact on U.S. Dollar Demand

According to ChainCatcher, following the passage of the first stablecoin legislation, the GENIUS Act, in the United States, Wall Street is divided on whether stablecoins can significantly boost demand for the U.S. dollar and create new buying interest in short-term U.S. Treasury bonds. Strategists from institutions such as JPMorgan, Deutsche Bank, and Goldman Sachs generally believe it is premature to declare stablecoins as game-changers. U.S. Treasury Secretary Besant estimates that the stablecoin market could grow from its current $300 billion to $3 trillion by 2030, potentially increasing demand for short-term Treasury bonds. However, skeptics argue that the funds backing stablecoins primarily originate from existing sources, suggesting that stablecoins may merely shift existing Treasury holders rather than generate new demand.