Stablecoin Issuers' U.S. Treasury Holdings Could Impact Economic Stability

According to PANews, stablecoin issuers like Circle and Tether are acquiring more U.S. Treasury bonds than many countries, potentially reshaping the U.S. economy. Tether recently disclosed holding over $100 billion in U.S. Treasury bills, surpassing countries such as the United Arab Emirates and Germany. While cryptocurrency advocates argue that stablecoins could reinforce the dollar's global dominance, critics caution that even a small market share of stablecoins might destabilize the banking sector. This concern arises from the possibility of stablecoins diverting funds from bank deposits, which are essential for loan liquidity, thereby posing a threat to the credit system.