Bessent says strong dollar based on credibility, policy certainty
Wilkins said $300 billion in stablecoins could deepen demand for US government debt and create liquidity strains if redemptions surge.
- In a speech at Queen's University Belfast on Tuesday, Bank of England Financial Policy Committee member Carolyn Wilkins said stablecoins could reinforce the US dollar's international role by expanding access to dollar-linked assets and increasing demand for Treasurys.
- Global stablecoin circulation reached roughly $300 billion by mid-2026, with the US dollar accounting for 98% of that value and giving the currency what Wilkins described as a "considerable first-mover advantage."
- Major issuers Tether and Circle held nearly $150 billion in Treasury bills at the end of 2025, acting as significant buyers of US government debt that link issuer earnings to American securities.
- Wilkins warned that rapid redemptions could force issuers to sell Treasury bills simultaneously, worsening market liquidity and echoing the 2022 UK liability-driven investment crisis that prompted Bank of England intervention.
- Separately on Tuesday, Treasury Secretary Scott Bessent asserted the US dollar "thrives as a reserve currency," citing "two of the most successful Treasury auctions in 20 years" as evidence of global confidence in current administration policies.
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Cryptocurrency News | Cryptocurrency Prices | Market CapStablecoins could boost US dollar and Treasury demand: BoE
Dollar stablecoins have grown to about $300 billion in circulation, prompting a Bank of England policymaker to warn that their expansion could increase demand for US Treasurys while creating new risks during periods of heavy redemptions. Stablecoins could extend the…
‘Strong dollar is not a price on a screen’: Bessent defends US currency as global transactions rise
Bessent said during testimony before the House Financial Services Committee that the Trump administration’s efforts to provide regulatory, tax, trade and energy certainty were attracting trillions of dollars into the United States.
Bessent says strong dollar based on credibility, policy certainty
Sept 15 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Tuesday that the U.S. dollar continues to thrive as a reserve currency, with rising transaction volume globally reflecting the "credibility of our system and what this administration ...
The US Treasury Secretary Scott Bisnet said today Tuesday that the US dollar is still booming as a reserve currency, where the world's high volume of transactions reflects "the credibility..."
The Bank of England Just Told You What Stablecoins Are Really For
The US dollar is facing a stress test not from a rival sovereign currency, but from a private-sector digital wrapper denominated in greenbacks. Carolyn Wilkins, an external member of the Bank of England’s Financial Policy Committee, has finally said the quiet part out loud: stablecoins are no longer just a crypto-native curiosity; they are a […]
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