The Trump administration is considering a strategy to expand the use of dollar-backed stablecoins overseas as a means to reinforce the US dollar's position as the world's reserve currency, according to Bloomberg reporting.
The initiative could involve joint ventures between the US government and private-sector firms, with participation from multiple federal agencies including the Treasury Department, State Department, and the US International Development Finance Corporation. The effort aims to increase international demand for dollar-denominated stablecoins while potentially boosting interest in US Treasurys, which commonly serve as reserve assets for such stablecoins.
The proposed overseas initiative reflects growing competition in digital currency infrastructure. China's digital yuan participates in Project mBridge, a platform for cross-border central bank digital currency transactions. The European Central Bank is preparing a 12-month digital euro pilot expected to launch in the second half of 2027.
Dollar Dominance and Stablecoins
US officials have emphasized connections between stablecoin adoption and maintaining dollar strength globally. In February 2025, David Sacks, serving as White House crypto and AI czar, stated that stablecoins could extend the dollar's international dominance and potentially create trillions in additional demand for US government debt.
US Treasury Secretary Scott Bessent linked stablecoin regulation to broader economic goals in July 2025, stating that the GENIUS Act—which established a federal regulatory framework for payment stablecoins—could strengthen the dollar's status as global reserve currency, expand access to the dollar economy, and increase demand for US Treasurys.
On August 17, the Treasury issued a notice of proposed rulemaking seeking public comment on provisions governing the issuance, offering, and sale of payment stablecoins. Bessent stated the rules would help secure the US dollar's standing as the world's reserve currency.
