Dollar-backed stablecoins may reach a scale of 2 trillion.

Recently, during a hearing of the Senate Appropriations Committee, the U.S. Treasury Secretary stated that the market value of stablecoins pegged to the dollar could surge to $2 trillion in the coming years.

The Treasury Secretary informed lawmakers that the U.S. government is taking steps to strengthen the dollar's status as the reserve currency, support legislation to more deeply integrate stablecoins into the financial system, and establish strict rules to ensure they are fully backed by Treasury bills and other short-term government debt.

He believes that concerns about the future of the US dollar have repeatedly emerged throughout history, but each time the dollar has made a strong comeback. Now, he sees cryptocurrency as the next stage in the development of the dollar.

During the inquiry, the finance minister emphasized: "This government is committed to maintaining and consolidating the dollar's status as a reserve currency." He also pointed out that the legislation currently being considered by Congress will establish clear rules for stablecoins pegged to the dollar, which must be backed 1:1 by high-quality assets such as U.S. Treasury securities.

The Secretary of the Treasury stated that the $20 trillion forecast is not unfounded. He believes this is a reasonable figure, and the actual scale may far exceed this level. His view is that as more people begin to use stablecoins for everyday transactions, stablecoins backed by U.S. debt will enhance the dollar's influence globally. He also believes that stablecoins pegged to the dollar will boost global demand for U.S. government bonds, which aligns with broader fiscal goals.

Meanwhile, Congress is working to push through new stablecoin legislation. The Senate recently passed an important procedural vote with a result of 68 votes in favor and 30 against, with the final bill expected to pass as early as next week. The bill has the support of the current president, major cryptocurrency lobbying groups, and influential lawmakers from both parties.

A day before the Senate vote, the House Financial Services Committee and the Agriculture Committee passed a broader cryptocurrency bill, after Republicans blocked an amendment aimed at restricting the President's ability to profit from his cryptocurrency assets.

Some cryptocurrency groups invested heavily in supporting pro-cryptocurrency candidates and policies during the last election. Now, these groups are backing this bill to ensure that stablecoins can be more widely used in the payment sector.

Retailers are also strongly supporting this technology, hoping that this currency can provide an alternative to major credit card companies, as credit card processing fees have long been a problem faced by large merchants.

However, there are differences of opinion within the banking industry. Smaller banks warn that stablecoins could siphon deposits away from the traditional banking system, thereby reducing lending and everyday credit channels. On the other hand, larger banks are exploring the creation of their own stablecoins to gain control over customer funds and earn interest from the reserves backed by these stablecoins.

The Secretary of the Treasury emphasized that as long as these stablecoins are fully backed by U.S. government debt, the demand for the dollar both domestically and internationally will become stronger. He also mentioned that despite analysts predicting an additional $1 trillion in stablecoin purchases by the U.S. Treasury by 2030, the Treasury sees even greater potential. "This is not just a possibility, but a goal that we are actively working to achieve," he said.

The bill is a top priority for the Treasury Department and the White House. The chairman of the Senate Banking Committee confirmed that he will hold a hearing in July on this broader cryptocurrency regulation bill, but it may not pass until the fall. The Senate Majority Leader stated that the Senate will strive to pass this stablecoin bill in the coming days and urged the House to act quickly to send it to the President.