Bloomberg: US betting on stablecoin expansion to around $3 trillion

Bloomberg reported that the US government is betting that stablecoins denominated in US dollars issued by institutions such as Tether will expand to approximately $3 trillion in size in the coming years to support the international status of the US dollar and absorb more demand for US bonds. The article points out that Tether has doubts about compliance and anti money laundering practices in its registered location. If it is subject to a run or smart contract failure, it may impact its US Treasury assets and disrupt global payments and settlements. The European Central Bank is promoting central bank digital currencies and tokenizing the euro to support atomic settlements and avoid being influenced by US private dollar tokens.