Stablecoin Market Potential - The stablecoin market has the potential to reach $34 trillion, driven by demand for US dollars in regions with high inflation and limited access to USD banking services [1] Geopolitical Implications - Promotion of stablecoins by figures like Besson and Trump has geopolitical significance, aiming to facilitate the purchase of Treasury bills [1] - The core goal is to attract price-insensitive buyers to buy Treasury bills, aligning with U S monetary policy interests [1] Regional Demand - Latin America and developing Asia exhibit strong demand for US dollars due to high inflation and low deposit rates [1] - Local regulations restricting foreign banks' USD services contribute to the popularity of stablecoins like Tether [1]

The Fed’s rate cut will likely reduce U.S. borrowing costs for short-term Treasury bills, but annual interest expense won’t shrink much https://t.co/7zYnURidML ...