US Treasury Secretary Scott Bessent predicts the stablecoin market will increase from the current $240 billion to $2,000 billion, driving demand for Treasury bonds.
In the hearing before the Senate Budget Allocation Committee on June 11, US Treasury Secretary Scott Bessent affirmed the strategic role of stablecoins in consolidating the global dominance of the USD. He stated that the stablecoin market could exceed $2,000 billion by 2028, creating a strong momentum for demand for US Treasury bonds.
This statement was made in response to a question from Senator Bill Hagerty, who introduced the Genius Act bill requiring stablecoins to be fully backed by cash or short-term US government bonds. According to an estimate cited by Senator Hagerty, passing this law would expand the stablecoin market from the current $240 billion to $2,000 billion by the end of 2028.
"I believe that the law on stablecoins backed by Treasury bonds or government bills will create a market that can expand the use of USD through stablecoins worldwide," Secretary Bessent emphasized. He assessed the figure of $2,000 billion as reasonable and entirely possible to be exceeded.
Consolidating the Global Reserve Status of USD
Secretary Bessent argued that throughout history, the global reserve status of the USD has been challenged multiple times but always reaffirmed through new economic mechanisms, and stablecoins could be the next cycle in this process. He affirmed the government's commitment to maintaining the USD's global reserve currency role by focusing on digital assets.
According to expert analysis, requiring stablecoins to be backed by US government debt will bring many strategic benefits. This will not only expand the depth of the Treasury bond market but also increase USD liquidity access globally, especially in areas with limited access to traditional banking services.
Although stablecoins still face concerns about legal oversight and market stability, supporters argue that increasing USD influence in international finance through stablecoins will bring significant benefits to the US economy. The development of this market is expected to create a stable and large demand for government debt instruments, while consolidating the US's financial leadership on the international stage.
