It is predicted that Donald Trump, the President-elect of the United States, will seek to strengthen the influence of the US dollar through stablecoins after taking office.
Dunamu Upbit Investor Protection Center released a report on November 27 titled 'The US-Led Digital Asset Market'.
According to the report, the majority of the collateral for stablecoins that have come under regulation is US Treasuries. In particular, 86% of the collateral for the major stablecoin USDC was US Treasuries as of September this year.
The expansion of regulated stablecoins can lead to increased US Treasury purchases and strengthening of the dollar's dominance, the report said. The report analyzed that "President-elect Trump, who opposes central bank digital currencies (CBDCs), can strengthen the dominance of the US dollar and secure fiscal stability through the expansion of stablecoins".
Yoon Chang-bae, a researcher at the Upbit Investor Protection Center, explained that "as the demand for Treasuries increases with the expansion of stablecoin issuance, the government can improve fiscal stability".
The report forecasts that the virtual asset market will undergo a major change led by the United States next year. This is because the Republican Party has taken control of the White House as well as the Senate and the House of Representatives in the US election, enabling them to actively push for policies. In addition, Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), who has led a strong regulatory policy, has expressed his intention to resign.
The center said, "It is likely that the next chairman will be appointed as a virtual asset-friendly person," and "the industry and market will change rapidly".
- Reporter Maeng Jun-ho
- next@sedaily.com
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