🚨Scott Bessent will sell US debt for stablecoins
His plan will halve US debt and inject billions in crypto
I interviewed a White House insider and was shocked
Here's his SECRET plan and what's coming next👇🧵
His plan will halve US debt and inject billions in crypto
I interviewed a White House insider and was shocked
Here's his SECRET plan and what's coming next👇🧵
Before we begin...
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It motivates me to give even more alpha!
1/
Scott Bessent is not a name most retail traders know, but in U.S. financial circles he’s a heavyweight
He built his career managing billions at Soros Fund Management and later founded Key Square Group, a global macro hedge fund
Recently, he joined Donald Trump’s economic advisory team, tasked with shaping policy for America’s next term
His latest proposal is unusual - use crypto’s fastest-growing sector, stablecoins, to help finance U.S. government debt
Scott Bessent is not a name most retail traders know, but in U.S. financial circles he’s a heavyweight
He built his career managing billions at Soros Fund Management and later founded Key Square Group, a global macro hedge fund
Recently, he joined Donald Trump’s economic advisory team, tasked with shaping policy for America’s next term
His latest proposal is unusual - use crypto’s fastest-growing sector, stablecoins, to help finance U.S. government debt
2/
The American government runs on borrowed money, issuing Treasuries to cover budget gaps instead of raising taxes immediately
These bonds are sold worldwide to foreign governments, big banks, and institutional investors
That system works as long as demand stays high, keeping the U.S. dollar anchored as the world’s reserve currency
But in recent years, foreign appetite for Treasuries has started to weaken, creating a dangerous funding gap
The American government runs on borrowed money, issuing Treasuries to cover budget gaps instead of raising taxes immediately
These bonds are sold worldwide to foreign governments, big banks, and institutional investors
That system works as long as demand stays high, keeping the U.S. dollar anchored as the world’s reserve currency
But in recent years, foreign appetite for Treasuries has started to weaken, creating a dangerous funding gap
3/
China and Japan, once the largest buyers of U.S. debt, have been quietly reducing their holdings for years
At the same time, the U.S. national debt has exploded past $37 trillion, forcing repeated debt ceiling hikes to avoid default
Last year’s standoff in Congress showed how close America can come to a technical shutdown without new financing
This is the backdrop for Bessent’s stablecoin plan - a workaround to bring in fresh buyers without depending on foreign central banks
China and Japan, once the largest buyers of U.S. debt, have been quietly reducing their holdings for years
At the same time, the U.S. national debt has exploded past $37 trillion, forcing repeated debt ceiling hikes to avoid default
Last year’s standoff in Congress showed how close America can come to a technical shutdown without new financing
This is the backdrop for Bessent’s stablecoin plan - a workaround to bring in fresh buyers without depending on foreign central banks
4/
Stablecoins are digital tokens pegged to a national currency, most often the U.S. dollar
Today, over 90% of all stablecoins in circulation are backed by either cash deposits or short-term U.S. Treasuries
Laws like the proposed Stable Act and GENIUS Act would force issuers to hold 1:1 reserves in safe assets - meaning more demand for Treasuries
In Bessent’s vision, every stablecoin minted worldwide becomes a new source of funding for the U.S. government
Stablecoins are digital tokens pegged to a national currency, most often the U.S. dollar
Today, over 90% of all stablecoins in circulation are backed by either cash deposits or short-term U.S. Treasuries
Laws like the proposed Stable Act and GENIUS Act would force issuers to hold 1:1 reserves in safe assets - meaning more demand for Treasuries
In Bessent’s vision, every stablecoin minted worldwide becomes a new source of funding for the U.S. government
5/
This approach sidesteps the geopolitical push to de-dollarize led by BRICS+ nations
Even if foreign governments reduce their Treasury purchases, citizens in unstable economies still want dollars
Whether in cash or digital form, USD is often safer to hold than a rapidly devaluing local currency
By distributing stablecoins globally, the U.S. can maintain monetary influence without negotiating with hostile regimes
This approach sidesteps the geopolitical push to de-dollarize led by BRICS+ nations
Even if foreign governments reduce their Treasury purchases, citizens in unstable economies still want dollars
Whether in cash or digital form, USD is often safer to hold than a rapidly devaluing local currency
By distributing stablecoins globally, the U.S. can maintain monetary influence without negotiating with hostile regimes
6/
In countries like Argentina, Nigeria, and Turkey, black markets for dollars are already thriving
People there use USD as a store of value against inflation that can run into triple digits
Stablecoins make access to dollars instant, borderless, and far harder to restrict than physical banknotes
For Washington, this turns everyday savers into indirect holders of U.S. government debt
In countries like Argentina, Nigeria, and Turkey, black markets for dollars are already thriving
People there use USD as a store of value against inflation that can run into triple digits
Stablecoins make access to dollars instant, borderless, and far harder to restrict than physical banknotes
For Washington, this turns everyday savers into indirect holders of U.S. government debt
7/
If adopted at scale, this could fundamentally change who finances America’s deficit
Instead of relying on a handful of big foreign creditors, millions of individuals would be holding assets backed by Treasuries
That would keep demand for U.S. debt steady and, in turn, support the dollar’s dominance in global trade
It’s a blend of financial engineering and geopolitical strategy wrapped in blockchain packaging
If adopted at scale, this could fundamentally change who finances America’s deficit
Instead of relying on a handful of big foreign creditors, millions of individuals would be holding assets backed by Treasuries
That would keep demand for U.S. debt steady and, in turn, support the dollar’s dominance in global trade
It’s a blend of financial engineering and geopolitical strategy wrapped in blockchain packaging
8/
For the crypto market, this trend has a double-edged impact
On one hand, more stablecoin usage means more people on-ramping into the crypto ecosystem, even if they start with digital dollars
On the other, it concentrates stablecoin power into the hands of a few large, regulated issuers, limiting decentralization
Still, the sheer volume of new users could fuel broader adoption of other digital assets over time
For the crypto market, this trend has a double-edged impact
On one hand, more stablecoin usage means more people on-ramping into the crypto ecosystem, even if they start with digital dollars
On the other, it concentrates stablecoin power into the hands of a few large, regulated issuers, limiting decentralization
Still, the sheer volume of new users could fuel broader adoption of other digital assets over time
9/
Bitcoin stands to benefit indirectly from this shift
Once someone is comfortable holding USDT or USDC, moving into BTC is just one click away on most exchanges
In countries with weak banking systems, stablecoins often act as the first introduction to self-custody and digital asset storage
From there, Bitcoin’s fixed supply and independence from government policy make it an attractive upgrade
Bitcoin stands to benefit indirectly from this shift
Once someone is comfortable holding USDT or USDC, moving into BTC is just one click away on most exchanges
In countries with weak banking systems, stablecoins often act as the first introduction to self-custody and digital asset storage
From there, Bitcoin’s fixed supply and independence from government policy make it an attractive upgrade
10/
It’s worth noting that Bessent’s plan is not a permanent solution to America’s fiscal problems
$37 trillion in debt cannot be made sustainable simply by changing who buys the bonds
Stablecoins may extend the dollar’s reign, but they don’t erase the reality of overspending and long-term inflation
Eventually, confidence in fiat could erode - and when it does, hard assets will lead the safe-haven race
It’s worth noting that Bessent’s plan is not a permanent solution to America’s fiscal problems
$37 trillion in debt cannot be made sustainable simply by changing who buys the bonds
Stablecoins may extend the dollar’s reign, but they don’t erase the reality of overspending and long-term inflation
Eventually, confidence in fiat could erode - and when it does, hard assets will lead the safe-haven race
11/
If this strategy works, stablecoin market cap could multiply in the coming years, pulling in billions in fresh Treasury demand
That would stabilize U.S. borrowing costs, slow the pace of de-dollarization, and give Washington more time to adjust fiscal policy
But history shows that all fiat currencies eventually weaken - and when that cycle reaches the dollar, digital scarcity wins
In that endgame, Bitcoin’s monetary properties could make it the prime beneficiary
If this strategy works, stablecoin market cap could multiply in the coming years, pulling in billions in fresh Treasury demand
That would stabilize U.S. borrowing costs, slow the pace of de-dollarization, and give Washington more time to adjust fiscal policy
But history shows that all fiat currencies eventually weaken - and when that cycle reaches the dollar, digital scarcity wins
In that endgame, Bitcoin’s monetary properties could make it the prime beneficiary
12/
Bottom line - Bessent’s proposal is less about crypto adoption for its own sake and more about defending U.S. economic power
It’s a strategic use of blockchain rails to keep the dollar embedded in global finance for as long as possible
For traders, the takeaway is clear - stablecoin growth will reshape the crypto landscape in the short term
And when the dollar eventually falters, the same system could funnel capital into Bitcoin at unprecedented speed
Bottom line - Bessent’s proposal is less about crypto adoption for its own sake and more about defending U.S. economic power
It’s a strategic use of blockchain rails to keep the dollar embedded in global finance for as long as possible
For traders, the takeaway is clear - stablecoin growth will reshape the crypto landscape in the short term
And when the dollar eventually falters, the same system could funnel capital into Bitcoin at unprecedented speed
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