Trump Administration Weighs a Global Stablecoin Plan to Cement Dollar's Dominance

People familiar with the discussions said the Trump administration is also exploring a plan that would encourage dollar-backed stablecoins to be used more broadly abroad as part of an effort to maintain the dollar's status as the world's dominant reserve currency.

It may include working alongside private firms and agencies of the US government, such as the International Development Finance Corporation, the State Department and the Treasury Department. The plan is still in the planning stages, according to Bloomberg.

What Are Stablecoins? Stablecoins are digital tokens that want to be as stable in value as possible. The main goal of stablecoins is to keep their value stable by being backed by fiat currency or other assets.

U.S. policymakers may find this development appealing for a critical reason: it would link dollar stablecoins to the demand for U.S. government securities. The issuers usually back their tokens with reserves composed of cash and short-term government debt. The global growth of dollar stablecoins could thus boost foreign demand for U.S. debt.

It would also leverage the Trump administration's broader endorsement of stablecoins. The U.S. Senate adopted the GENIUS Act last year, which sets a federal regulatory framework for payment stablecoins and demands that stablecoin issuers hold qualifying reserves.

The initiative comes as other large economies are working on their own digital-money alternatives. European banks are working on euro-based stablecoins, and European regulators have expressed worries about the impact of private-sector digital-currency ventures on monetary policy and financial stability.

In addition, worldwide adoption of dollar-pegged stablecoins might pose difficulties for developing countries. Countries with existing weak currencies and high capital outflows might find it easier to move the money when the digital dollar is adopted more broadly, according to experts and international banks.

The plan also arrives as some of the largest financial institutions are ramping up their own plans for stablecoins. A 21-bank consortium, which includes Goldman Sachs, Bank of America, Citi and Deutsche Bank, has announced plans to launch an entity in 2027 to issue a dollar-backed stablecoin.

A plan that would help the Trump administration to boost dollar-backed stablecoins while finding new outlets for U.S. government debt still has a long way to go. And the plan's future form, who will be involved and how broad its reach will be have yet to be decided.