US Bets on Stablecoins to Extend Dollar Reign Amid CBDC Race

Treasury Secretary Scott Bessent positioned dollar-backed stablecoins as America’s answer to central bank digital currencies Wednesday, predicting a $2 trillion+ market by 2028 under the GENIUS Act framework.

“Just as Eurodollars preserved dollar dominance last century, regulated stablecoins will be our new tool,” Bessent told senators advancing the legislation.

The bill would create the world’s first comprehensive stablecoin regime, requiring full asset backing and transparency measures.

With China and other nations developing CBDCs, the Trump administration is racing against an August deadline to establish US leadership in digital currency markets. Bessent’s projection suggests stablecoins could become as impactful to dollar supremacy as the petrodollar system was in the 1970s.