Viewpoint: Promoting the issuance of stablecoins in the short term may increase liquidity supply

Odaily Planet Daily News: Yi Qiao, Chief Macroeconomist of Huatai Securities, analyzed that measures such as relaxing bank supervision and promoting stablecoin issuance may increase the demand and liquidity supply of US bonds in the short term, and even to some extent smooth out the supply-demand contradiction of US bonds. However, creating demand for US bonds in the short term may actually amplify the long-term risks of US bonds. In addition, the "Big and Beautiful" bill is expected to push up the US fiscal deficit by more than $4 trillion over the next decade, surpassing the previous version of the House of Representatives. Previously, Deutsche Bank had pointed out that the bill may vigorously promote the stablecoin, increase domestic financial repression, put pressure on the Federal Reserve to cut interest rates, and significantly weaken the US dollar. (Caixin Network)