A report prepared by the Treasury's Office of Debt Management suggests that Central Bank Digital Currencies (CBDC) will likely replace stablecoins as the primary digital currency for tokenized transactions. The report highlights the significant amount of US Treasuries bought by stablecoin issuers, particularly Tether, and expresses concern over stablecoins depegging or collapsing. The Treasury recommends that the US government eventually replace private stablecoins with a CBDC issued by the Federal Reserve. Despite some Republican lawmakers opposing CBDC development, former President Donald Trump's crypto project plans to issue its own stablecoin.
Expert Says This Time Will Not Be Different After Massive Bitcoin Rallies in Last Three US Elections