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.Â
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
