US Weighs Global Push for Dollar Backed Stablecoins to Protect Dollar’s Reserve Status

The Trump administration is reportedly considering a plan to promote dollar-backed stablecoins overseas, aiming to keep the US dollar strong as the world’s reserve currency. A report citing people familiar with the matter says Washington could back stablecoin projects through joint ventures with private companies.

Federal Agencies That May Take Part

The Treasury Department, the State Department and the US International Development Finance Corporation (DFC) could all be involved. The plan would widen global use of dollar stablecoins and could raise demand for US Treasurys, which often back these tokens. The Treasury, the DFC and several stablecoin firms did not respond to requests for comment.

Rival Digital Payment Systems

Other countries are building their own networks. China’s digital yuan is among the currencies used in Project mBridge, a cross-border CBDC platform. The European Central Bank is preparing a 12-month digital euro pilot, expected to begin in the second half of 2027.

GENIUS Act and Dollar Dominance

In February 2025, David Sacks, then the White House crypto and AI czar, said stablecoins could extend the dollar’s reach and add trillions in demand for US debt. In July 2025, Treasury Secretary Scott Bessent said the GENIUS Act, the federal framework for payment stablecoins, could strengthen the dollar’s status. On Aug. 17, the Treasury issued a proposed rule seeking public comment on how payment stablecoins are issued and sold. Bessent said it would help “cement” the dollar’s reserve role.