2025-04-07
More people in government, tech, and
finance are starting to see stablecoins as a way to protect the US dollar's
power around the world.
Bryan Pellegrino, the CEO of LayerZero
Labs, believes stablecoins are the best tool the US has to keep the dollar
dominant in global finance.
His company created LayerZero, a system
that helps different blockchains work together, and it's been chosen by the
state of Wyoming to help launch its own stablecoin.
Pellegrino says stablecoins, which are
tied to the US dollar, make it easier for people around the world to use the
dollar, even in countries with unstable currencies like Argentina or Venezuela.
He calls stablecoins a "Trojan Horse" that can quietly spread the
dollar’s influence everywhere.
He also expects that both federal and
state governments in the US will increasingly support stablecoins because they
increase global demand for the dollar and help keep it at the center of
international finance.
US Government Sees Stablecoins as a Way
to Protect the Dollar
Pellegrino points to Tether, a leading
stablecoin issuer, as proof of the growing influence of stablecoins.
Tether is now the 7th largest
buyer of US Treasury bonds, ahead of entire countries like Canada and Germany.
This shows how much stablecoin companies are investing in US government debt.
At a White House crypto event in March,
US Treasury Secretary Scott Bessent said the Trump administration would use
stablecoins to help keep the dollar dominant worldwide. He said this would be a
top priority in 2025.
A 2023 report from Chainalysis found
that in Latin American countries like Argentina, Brazil, Mexico, and Venezuela,
over half of all crypto transactions were done using stablecoins.
People in these countries prefer
stablecoins because they have low fees, are more stable than their local
currencies, and allow for fast transfers. This makes stablecoins a good option
for sending money home or protecting savings in places with high inflation or
strict money controls.
