PANews reported on June 21 that according to CNBC, stablecoins may become a new tool for U.S. Treasury Secretary Besent to offset the country's deficit. Besent previously expressed appreciation for the GENIUS Act and stated that a regulated and evolving stablecoin market could create new buyers for U.S. government debt and drive private sector demand for U.S. Treasury bonds. Besent previously told the U.S. House Financial Services Committee in May that some speculate the stablecoin market's demand for U.S. government securities could reach up to $2 trillion in the coming years.
However, analysts believe that the stablecoin industry is unlikely to completely solve the U.S. government's debt financing issues and may bring additional risks, as the additional demand for stablecoins will take time to develop, while the U.S. Treasury may need to issue a large number of debt securities within a year. If problems arise that prevent the Federal Reserve from lowering interest rates, the U.S. deficit could spiral out of control.
