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Stablecoins Poised to Reshape U.S. Monetary Policy by 2030
New report projects $1 trillion annual payment volume and major impact on Treasury markets
A joint report from Keyrock and Bitso forecasts that stablecoins could reach $1 trillion in annual payment volume by 2030, representing 10% of the U.S. money supply and holding 25% of the U.S. Treasury bill market with a $2 trillion supply.
The research suggests stablecoins can process payments up to 13 times cheaper than traditional banks, with instant settlement, creating what it calls a “new financial operating system” that removes intermediaries and accelerates global value exchange.
Market Growth and Macroeconomic Impact
- Stablecoin market surged from $4 billion in 2020 to over $280 billion in 2025.
- Monthly settlements reached $1.39 trillion in the first half of 2025.
- Major issuers now rank 17th globally in U.S. Treasury holdings — ahead of South Korea, Germany, and Saudi Arabia.
- Stablecoin inflows can influence Treasury yields, making issuers active players in bond markets.
Evolving Payment Infrastructure
The report highlights the “stablecoin sandwich” model:
- Fiat on-ramp
- On-chain stablecoin transfer
- Fiat off-ramp
This structure replaces correspondent banks with programmable, instant settlement bridges.
Other innovations include:
- Virtual USD accounts — mimic U.S. bank accounts but run on blockchain.
- Self-custody options reducing reliance on local banking.
- Proprietary stablecoins launched by major fintech firms to control payment networks.
Programmability and New Applications
Programmable stablecoins could enable:
- Trustless escrow
- Automated corporate liquidity management
- Real-time payroll
- IoT micropayments based on sensor data
FX Market Disruption
The $7.5 trillion daily foreign exchange market is a prime target:
- On-chain FX enables instant, risk-free settlement (T+0, 24/7).
- Could eliminate pre-funding inefficiencies that tie up $27 trillion in global bank accounts.
- Stablecoin-powered platforms achieve far higher capital turnover than traditional money transfer operators.
Regulatory Tensions
- U.S. banking associations warn that yield-bearing stablecoins could trigger $6.6 trillion in deposit outflows, destabilizing banks.
- Banks are lobbying for tighter GENIUS Act restrictions.
- Coinbase and PayPal continue to offer rewards programs, claiming they are not issuers.
Cross-Border Adoption
- Stablecoins projected to facilitate 12% of global cross-border flows by 2030.
- Visa partners with Yellow Card Financial for stablecoin payments in 20 African countries.
- Mastercard integrates Chainlink to enable crypto purchases for 3 billion cardholders.
Bottom line: Stablecoins are rapidly evolving from niche digital assets to a core component of global finance, with the potential to reshape U.S. monetary policy, disrupt the FX market, and challenge traditional banking models.
@ Newshounds News™
Source: Cryptonews
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U.S. Treasury Reaffirms Plans for Strategic Bitcoin Reserve
Secretary Bessent walks back earlier remarks that rattled markets
U.S. Treasury Secretary Scott Bessent clarified Thursday that the department is still exploring budget-neutral ways to purchase Bitcoin for the nation’s Strategic Bitcoin Reserve — reversing comments made earlier in the day that had triggered a $55 billion market sell-off.
“Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world,’”
— Scott Bessent, via X
Bessent reiterated that Bitcoin forfeited to the federal government would remain the foundation of the reserve.
Market Impact
- Initial FOX Business interview was interpreted as Treasury abandoning Bitcoin purchases.
- Within 40 minutes, Bitcoin’s price fell from $121,073 to $118,886.
- Clarification later in the day eased concerns, but Bitcoin remained near $118,500.
Ongoing Strategy & Delays
- Strategic Bitcoin Reserve established by Executive Order (March 6), alongside a Digital Asset Stockpile.
- Reserve currently relies on seized crypto assets from criminal cases.
- Additional purchases require budget-neutral funding — meaning no extra taxpayer cost.
- Proposed funding ideas include:
- Reevaluating Treasury’s gold certificates.
- Using tariff revenue.
- Treasury has been in the “exploration” phase for five months, frustrating some industry leaders.
Criticism from the Crypto Sector
- Bitcoin mining firm Braiins CEO Eli Nagar criticized the slow pace:
“At some point, exploration without execution starts to look like avoidance.”
- Concerns persist that other nations could front-run U.S. Bitcoin accumulation.
Congressional Role
- Treasury may need Congressional approval for budget-neutral Bitcoin purchases.
- Sen. Cynthia Lummis urged lawmakers to advance her BITCOIN Act to facilitate the process.
No Plans to Sell
- Bessent confirmed that U.S. will stop selling its Bitcoin holdings.
- Estimated current holdings:
- 198,012 BTC (BitBo data).
- Valued between $15B–$23.5B depending on market price.
Bottom line: Despite market confusion, the Treasury’s Bitcoin strategy remains intact but slow-moving, with political hurdles and funding mechanics still unresolved. The U.S. remains one of the largest national holders of Bitcoin — but the pace of accumulation may determine whether it can meet its goal of becoming the world’s Bitcoin superpower.
@ Newshounds News™
Source: Cointelegraph
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Ripple CTO Says XRP Ledger Ready to Power the Future of Global Financial Infrastructure
Ripple CTO David Schwartz says the XRP Ledger (XRPL) is fully equipped to serve as a cornerstone of global financial systems, noting that Ripple has been building toward this vision for over 13 years.
In a detailed post on X, Schwartz addressed the recent wave of stablecoin and payment companies launching their own blockchains, viewing it as confirmation that blockchain has become essential to financial infrastructure. He stressed that while launching a blockchain is challenging, building a trusted ecosystem with liquidity, real-world adoption, and active developers is even harder — an area where XRPL has a long-standing advantage.
Key Differences and Advantages of XRPL
- Unlike some blockchains that use permissioned validators — placing control in a few hands — XRPL is public and permissionless by default, offering greater resilience and global reach.
- The network also supports optional permissioned features for regulated, compliance-driven use cases.
- Low, predictable transaction fees with no separate gas token; transactions are paid in XRP, which also acts as a bridge asset for cross-border payments.
Influence on Newer Chains
Schwartz noted that newer blockchains are beginning to adopt XRPL-inspired features such as deterministic finality and the Proof-of-Authority (PoA) consensus mechanism, which ensure predictable and reliable settlement — key for institutional financial applications.
Looking Ahead
The Ripple CTO anticipates upcoming XRPL upgrades will enhance programmability, expand liquidity, and add compliance-grade capabilities for institutions. He welcomed new blockchain developers to “the party,” framing the industry’s rapid expansion as a positive sign of mainstream adoption.
@ Newshounds News™
Source: The Crypto Basic
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