Bloomberg Opinion: Stablecoin Expansion May Reshape Global Finance, Highlighting Regulatory Gaps

On June 5, according to Bloomberg, the US government is betting that dollar-denominated stablecoins issued by private entities like Tether will expand to approximately $3 trillion in the coming years, aiming to support the dollar's international dominance and absorb more demand for US debt. However, the article points out that the current mainstream stablecoin issuers are concentrated in Tether, whose compliance with registration and anti-money laundering practices is questionable. A run on Tether or a smart contract failure could impact the large amount of US debt assets it holds and disrupt global payments and settlements. The European Central Bank is advancing central bank digital currency and "tokenized euro" to support atomic settlement, thereby avoiding being locked into US private dollar tokens on critical financial infrastructure.