CNBC: Stablecoins may become an important source of funds for the US government and a new tool to make up for the deficit

PANews reported on June 21 that according to CNBC, stablecoins may become a new tool for U.S. Treasury Secretary Bessant to make up for the country's deficit. Bessant previously praised the GENIUS Act and said that a regulated and growing stablecoin market could create new buyers for U.S. government debt and boost private sector demand for U.S. Treasuries. Bessant previously told the U.S. House of Representatives Financial Services Committee in May that some speculated that the demand for U.S. government securities in the stablecoin market could be as high as $2 trillion in the next few years.

However, analysts believe that the stablecoin industry is unlikely to completely solve the U.S. government’s debt financing problem and may bring additional risks because the additional demand for stablecoins takes time to develop, and the U.S. Treasury may need to issue a large amount of debt securities within a year. If problems arise and the Federal Reserve is unable to cut interest rates, the U.S. deficit will get out of control.