The US has been pushed to maintain global dollar dominance by adopting Stablecoin may have accidental benefits for Bitcoin as it appears as a potential national reserve reserve.
During White House Crypto Summit On March 7, US Secretary of Treasury said Scott Bestent that the The American government is Use stablecoins to ensure that the US dollar remains global currency reserves worldwide.
“We will put a lot of thoughts on the Stablecoin regime, and as President Trump taught, we keep the US (dollar) the dominant currency reserves in the world,” Bescent said.
The Treasury Secretary also reiterated the Trump administration’s promise End the war in crypto and focus on the previous guide to the internal service of the income and regulatory measures.
President Trump delivers an address to the White House Crypto Summit. Source: The Associated Press
Comments came before Trump signed an executive order that established a bitcoin (Btc) Reserve using cryptocurrency eliminated in government criminal cases. While the adoption is not involved in the direct federal purchase of Bitcoin, it represents a transition to how the government views cryptocurrency.
Bitcoin can benefit from the growing stablecoin adoption and push for further regulation clarity, according to Omri Hanover, general manager in the Gems Trade Blockchain Launchpad.
“If Trump’s policy boosts US finance dominance, Europe’s reluctance and the ‘wait-and-see’ approach can weaken its economic action,” he told cointelegraph, and added:
“This division creates two facts in the market: the US accelerates the institutional adoption of Bitcoin, drawing capital; and the EU prioritizes compliance, endangered a capital transition to US markets.”
Meanwhile, two major bills are awaiting the approval of Congress: The Stablecoin Bill and the Bill of market structureaimed at helping to raise uncertainty in regulation in the US crypto industry.
Meanwhile, Pro-Crypto lawmakers focus on two top priorities in the legislative-stablecoins and General clarity of market structure – which will help lift uncertainty in the US crypto industry regulation. However, no relevant bills passed by Congress.
Related: US Bitcoin Reserve Marks ‘Real Step’ towards Global Financial Integration
Stablecoin’s growing revenue can flow to Bitcoin investments
The growing income of stablecoin providers can contribute to Bitcoin investments, further strengthening its status as a value store.
Tether, gave the world’s largest stablecoin, USDT (USDT), said it invests 15% of its net profit in Bitcoin to vary with backing assets.
Tether’s Bitcoin holders proved to be the benefit of when the firm has been posted a Record $ 4.5 billion income For the first quarter of 2024.
Approximately $ 1 billion derived from operating revenues derived from US treasury holders, while the remaining $ 3.52 billion was made up of market-to-man with bitcoin holders and gold positions.
Tether’s financial reserves, Q1 2024. Source: Tether
Related: Paolo Ardoino: competitors and politicians aim to ‘kill tether’
Tether’s “BC1Q” address is currently holding more than $ 6.8 billion worth of bitcoin, making it the sixth largest world-holder, Bitnefoocharts Data displays.
Tether’s bitcoin holdings The company achieved $ 5 billion in revenue during 2024, out of a total of $ 13 billion annual income, Cointelegraph reported on January 31.
https://www.youtube.com/watch?v=6ZNZG3GVPUI
Magazine: Bitcoin’s odds of June Highs, Sol’s $ 485M outflows, and more: Hodler’s Digest, March 2 – 8
