The U.S. is working on a solution that will create a distinct edge, relative to the rest of the world, in ensuring robust demand for its debt.

The solution:  private, regulated, Treasury-backed dollar stablecoins.

The legislation on this will 1) shore up the dollar's dominance in the world, AND 2) create a brand new, and very deep source of demand for U.S. Treasuries. 

Not only will this move by Congress ensure the dollar remains the world's reserve currency, but the dollar will become the world's digital reserve currency. 

So, people, businesses and governments from around the world will be able to own U.S. dollar stablecoins (effectively holding U.S. dollars) without the friction of opening a U.S. bank account or going through the U.S. financial system.  They get instant and virtually free (no wire fees, no spreads) access to the stability, trust and liquidity of the dollar. 

Through the dollar stablecoin, exposure to the dollar becomes instant, cheap and borderless.

Now, some important context:  Core to the Trump economic policy platform has been these three explicit actions:  1) lift restrictions on American energy production, 2) terminate the Green New Deal initiatives within the Inflation Reduction Act, and 3) oppose the creation of a central bank digital currency (CBDC).

As we've discussed here in my daily notes, the trading of global oil in U.S. dollars ("petrodollars") has been the cornerstone of the dollar's role as the world reserve currency, since the end of the gold standard. 

And the world reserve currency status has been key in building and sustaining the United States' position as the economic superpower.  

That's why the anti-oil policies of the Biden administration were an assured path to loss of reserve currency status of the dollar, and therefore a loss of wealth and power for the country.

So, the anti-oil policies are being reversed.  That, and this stablecoin legislation, disrupts years of globally coordinated efforts to shift the monetary system toward CBDCs and transform the global economy under the climate agenda.

That’s likely why we're hearing from central bank heads in Europe and China.

Trump is blowing the plan up. 

What's the difference between a stablecoin and a CBDC?

A CBDC is issued and controlled directly by a central bank — it's programmable, surveilled, and designed to displace the private banking system. It’s centralized monetary control.

A private, regulated dollar stablecoin, is issued by private entities (like fintechs), fully backed by U.S. Treasuries (1:1), and operates on open blockchain networks.  It's about market freedom, privacy, and competition. 

The dollar stablecoin will strengthen the dollar and strengthen the solvency of the United States.  Stablecoin companies will bring trillions of dollars of new demand to the Treasury market.