The Truth Behind Stablecoins

Stablecoins as a market for U.S. debt

Speaker 1: 00:00 If you can get hundreds of millions of people around the world to hold your digital dollars on their smartphones, you've just found a new market for U.S. debt.

Beyond this ability to program money, there's actually another reason why central planners want to do this: to be able to offload their debt onto the rest of the world. That's because in 2026, the United States government is running a deficit that is completely unsustainable. Foreign countries that used to buy U.S. Treasury bonds, they're now buying less of it. The traditional wholesale market for U.S. debt is getting smaller, and it's getting smaller because nations are trusting the U.S. less and less, especially in the context of the Iran war.

So how do you save the empire? Stablecoins. Because if you can get hundreds of millions of people around the world to hold your digital dollars on their smartphones, which are essentially just Treasury bills wrapped in an app, you've just found a new market for U.S. debt. That's where private corporations will be able to issue their own coins and pay their own yields with their own perks and benefits, and that's how you can export your debt into the global retail market.

And that props up demand for Treasuries. It preserves dollar dominance. And as a bonus, every single transaction will be visible, trackable, and, in theory, programmable.