The U.S. Treasury Secretary predicts that the stablecoin market will reach $2 trillion.

The U.S. Treasury Secretary recently stated at a Senate hearing that the market value of stablecoins pegged to the dollar is expected to grow rapidly to $2 trillion in the coming years. He emphasized that the government is taking measures to solidify the dollar's status as the global reserve currency and supports legislation to integrate stablecoins more deeply into the financial system.

The Treasury Secretary pointed out that the new legislation will establish clear rules for dollar-pegged stablecoins, requiring them to be backed 1:1 by high-quality assets such as Treasury bills. He believes that the prediction of $20 trillion is not unrealistic, and the actual figure could far exceed this level. As the use of stablecoins in everyday transactions increases, stablecoins backed by U.S. debt will expand the global influence of the dollar and stimulate demand for U.S. government bonds.

Meanwhile, Congress is advancing new stablecoin legislation. The Senate recently passed a key procedural vote with a result of 68 votes in favor and 30 against, and the final bill is expected to be passed as early as next week. This bill has the support of the President, major cryptocurrency advocacy organizations, and some influential lawmakers from both parties.

Retailers have expressed support for this technology, hoping that stablecoins can provide them with an alternative to credit card processing, thereby reducing the high processing fees they have long faced. However, opinions in the banking industry vary. Small banks warn that stablecoins could reduce deposits in the traditional banking system, while large banks are exploring the creation of their own stablecoins to control customer funds and profit from reserves.

The Treasury Secretary emphasized that as long as these stablecoins are fully backed by U.S. government debt, it will further enhance domestic and international demand for the dollar. He stated that although analysts predict an additional $1 trillion in stablecoin purchases by the U.S. Treasury by 2030, the government sees greater potential and will actively work to achieve this goal.

Congress leaders have stated that the Senate will work to pass this stablecoin bill in the near future and urged the House to take swift action. Meanwhile, the chairman of the Senate Banking Committee confirmed that hearings on a broader cryptocurrency regulatory bill will be held in July, but the bill may not be passed until the fall.