Beyond Stablecoins

Stablecoins are presented as a strategic extension of dollar dominance, with Washington wagering that regulated, fully backed tokens can create new demand for US Treasuries as traditional buyers retreat. The GENIUS Act, still awaiting a Senate vote, would require stablecoin issuers to buy T-bills, and it follows an executive order by President Trump to promote dollar-backed stablecoins worldwide. This is compared with the Eurodollar system, which reached a $50 billion market by 1970 and let the US sanction actors through correspondent banking.