The Trump administration is reportedly considering an initiative to promote the use of dollar-backed stablecoins overseas as part of an effort to reinforce the US dollar’s position as the world’s reserve currency.
Citing people familiar with the plans, Bloomberg reported on Wednesday that the US government could support stablecoin projects by creating joint ventures with private-sector firms. The effort could involve several federal agencies, including the Treasury Department, State Department and the US International Development Finance Corporation (DFC).
The initiative would seek to expand the international use of dollar-denominated stablecoins while potentially boosting demand for US Treasurys, a common reserve asset for dollar-backed stablecoins.
The potential overseas push also comes as other nations are developing their own digital payment infrastructure. China’s digital yuan is among the central bank digital currencies used in Project mBridge, a platform for cross-border CBDC transactions, while the European Central Bank is preparing a 12-month digital euro pilot expected to begin in the second half of 2027.
Cointelegraph reached out to the US Treasury, the DFC and several US-based stablecoin companies for comment, but did not receive a response before publication.
US ties stablecoin growth to dollar dominance
Senior US officials repeatedly linked the growth of dollar-backed stablecoins to maintaining the dollar’s global role and increasing demand for US government debt.
In February 2025, venture capitalist David Sacks, who served as the White House crypto and AI czar at the time, said stablecoins could “extend the dollar’s dominance internationally” and potentially generate trillions of dollars in additional demand for US government debt.
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In July 2025, US Treasury Secretary Scott Bessent said the GENIUS Act, which established a federal regulatory framework for payment stablecoins, could strengthen the dollar’s status as the global reserve currency, expand access to the dollar economy and increase demand for US Treasurys.
The Treasury also continued implementing the GENIUS Act. On Aug. 17, it issued a notice of proposed rulemaking seeking public comment on provisions governing the issuance, offering and sale of payment stablecoins. Bessent said the rules would help “cement” the US dollar’s status as the world’s reserve currency.
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