US will use stablecoins to ensure dollar hegemony — Scott Bessent

During the White House Crypto Summit on March 7, U.S. Treasury Secretary Scott Bessent emphasized a pivotal initiative: utilizing stablecoins to uphold the U.S. dollar’s status as the world’s reserve currency. In his remarks, Bessent reaffirmed the Trump administration’s commitment to reversing previous regulatory measures that he described as detrimental to the cryptocurrency sector, encapsulating a renewed vigor towards digital assets.

He stated, “We are going to put a lot of thought into the stablecoin regime, and as President Trump has directed, we are going to keep the US [dollar] the dominant reserve currency in the world, and we will use stablecoins to do that.” This approach signals a significant pivot in the administration’s digital currency strategy, which aligns with broader financial trends aimed at enhancing the stability and security of the dollar.

President Trump, addressing the summit attendees, expressed his hopes for lawmakers to expedite the passage of a comprehensive stablecoin regulatory framework, ideally placing it on his desk before August’s Congressional recess. His comments were especially pointed against the backdrop of actions taken by the Biden administration, particularly the sale of seized Bitcoin, which Trump criticized as resulting in substantial financial losses through hastened liquidation.

The summit underscored a historic shift in governmental attitudes towards cryptocurrencies, with attendees noting its implications for the regulatory landscape. Many industry stakeholders view this meeting as a crucial step towards legitimizing cryptocurrencies and creating a collaborative approach between the government and innovators in the digital space.

### Stablecoins’ Role in Upholding Dollar Dominance

The concept of overcollateralized stablecoins is emerging as a key mechanism for reinforcing U.S. dollar hegemony. By leveraging short-term U.S. Treasury bills and cash deposits as backing, these digital assets help sustain demand for treasury securities while maintaining a functional bridge between cryptocurrency and fiat currencies. This strategic approach not only stabilizes the value of the stablecoins themselves but also promotes the longevity of the dollar’s global dominance.

Federal Reserve Governor Christopher Waller has also voiced his support for the integration of stablecoins as instruments to bolster the dollar’s position. In a statement he made in February 2024, Waller suggested that the encroaching influence of cryptocurrencies could be countered through increased stablecoin adoption, effectively shielding the dollar from potential market disruptions.

Looking ahead, Waller reiterated this sentiment in February 2025, forecasting that stablecoins could mitigate the impact of capital controls in foreign nations and improve payment systems worldwide. His analysis supports legislative efforts currently underway, including the introduction of the Stable Act of 2025 by U.S. Representatives French Hill and Bryan Steil. This bill aims to implement a structured regulatory framework for dollar-pegged stablecoins, ensuring that the U.S. can maintain control over its financial narrative in the evolving digital landscape.

As the debate surrounding stablecoins, regulation, and the future of digital currencies continues to unfold, the U.S. administration appears keen on seizing this pivotal moment to reinforce the dollar’s global stature and realize the potential of innovative financial technologies.