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Washington’s Crypto Pivot Driven by Treasury Demand, Not Silicon Valley
Washington’s Crypto Pivot Driven by Treasury Demand, Not Silicon Valley
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BTCCSquare news:
The White House’s recent embrace of cryptocurrency is less about courting Silicon Valley donors or blockchain efficiency than it is about addressing a looming debt crisis. Foreign buyers of U.S. Treasuries, traditionally the backbone of American borrowing, are retreating—China’s holdings have plummeted to 2009 lows, while Japan continues to trim its stake.
With interest rates stubbornly above 4%, Treasury Secretary Scott Bessent sees stablecoins—dollar-pegged digital tokens—as an unlikely lifeline. These instruments now rank among the fastest-growing sources of demand for U.S. debt, offering a novel solution to America’s $37 trillion borrowing conundrum.
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