Thread by @WOLF_Financial

Scott Bessent had one job.

To sell the U.S. debt to the world.

He’s going to do it with Stablecoins (his words, not mine)

Here’s exactly what he’s got planned:

A few months ago, Bessent said something that many people overlooked:

“We are going to keep the U.S. the dominant reserve currency in the world, and we will use stablecoins to do that.”

Alright…cool. But what does this actually mean?

Why stablecoins? And why now?

Let’s start with the “why now” 👇

Why now?

Well…the U.S. has no other options.

• Foreign nations are selling treasuries
• The national debt is at a jaw-dropping $37 trillion
• BRICS+ nations are trying to establish a new currency

The U.S. had to do something, or it’ll lose reserve currency status.

It’s clear foreign governments want to be freed from their dollar shackles.

But just because governments don’t want the dollar doesn’t mean their citizens don’t.

In fact…most people around the world want dollars really badly.

But why?

Because even though dollars aren’t a great asset to hold, other fiat currencies are worse.

Argentina, for example, has an entire underground market where people exchange dollars.

Just to keep them away from their failing Argentine peso.

So where do stablecoins come in?

The overwhelming majority of stablecoins worldwide are already backed by dollars.

Beyond that, bills like the Stable Act and laws like the GENIUS Act require stablecoin issuers to…

Maintain a 1:1 reserve in either U.S. Treasuries or cash deposits.

This means that when citizens of other countries buy digital dollars, the dollar’s supremacy strengthens.

And as stablecoins become more widespread and accessible, more people will opt in.

Whether or not Bessent’s plan will be successful is anyone’s guess.

However, this is why you’re seeing so much stablecoin legislation.

But this is only a medium-term solution.

At the end of the day, the U.S. is in $37 trillion of debt.

Bessent’s stablecoin plan would only delay the inevitable.

So buy assets or get left behind.

There you have it!

Do you think Bessent’s plan will work?

If you found value in this post, follow me @WOLF_Financial for more, and smash that repost button!

That’s it for now.

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