- Bessent argues dollar-backed stablecoins reinforce the dollar by expanding global use through mobile access, not traditional banks.
- Stablecoin reserves must hold U.S. Treasuries, directly linking crypto growth to demand for U.S. government debt.
- He says crypto extends dollar dominance through digital payment modes, making it part of global monetary infrastructure.
Scott Bessent has pushed back on claims that crypto threatens the U.S. dollar, arguing the opposite. In public remarks, Bessent explained how stablecoins tied to the dollar may reinforce its global role. He said digital assets spread dollar usage worldwide through mobile access, not banks, reshaping modern monetary infrastructure.
Stablecoins and Treasury Demand
Bessent said stablecoins backed by U.S. dollars can become major buyers of Treasury bills and government debt. Notably, those reserves must sit in traditional financial instruments to maintain their dollar peg. As a result, stablecoin growth directly links crypto activity to demand for U.S. Treasuries.
He explained that users do not need physical dollars to transact. Instead, they hold dollar-backed stablecoins on phones. According to Bessent, this structure expands dollar use in regions where banking access remains limited. He referenced countries like Nigeria to illustrate mobile-based dollar transactions.
However, Bessent stressed that this system still relies on U.S. financial markets. The backing assets remain dollar-denominated and Treasury-based. That connection, he argued, ties crypto activity directly to U.S. monetary foundations.
Dollar Dominance and Policy Choices
Bessent also addressed recurring predictions about the dollar losing reserve status. He cited the book King Dollar, written by a journalist covering Treasury for decades. The book reviews repeated claims of dollar decline and explains why they never materialized.
Within that context, Bessent rejected the idea that crypto undermines dollar supremacy. Instead, he said stablecoins may lock it in. By embedding dollars into digital payment rails, crypto extends dollar reach without replacing it.
He contrasted this view with past regulatory approaches. Bessent said U.S. engagement with crypto mattered more than attempts to restrict it. He argued that aggressive constraints risked eliminating innovation rather than managing it.
Crypto as Financial Infrastructure
Bessent described digital assets as part of global monetary plumbing, not a temporary technology trend. He said innovation builds around crypto systems beyond simple transactions. Those systems, he noted, already influence global finance.
According to Bessent, ignoring crypto delayed policy understanding of its role. He emphasized that adoption continued regardless of political resistance. As stablecoins expand, they connect users directly to dollar-based systems.
Throughout his remarks, Bessent framed crypto as an extension of existing monetary tools. He focused on mechanics, reserves, and usage patterns. His comments centered on how digital assets interact with the dollar, not on speculative markets.
