TechFlow news, on January 7, according to Forbes, Bill Dudley, a senior researcher at Princeton University, stated that stablecoins cannot solve the issue of the U.S. Treasury's rising debt service costs. Although U.S. Treasury Secretary Scott Bessett once mentioned that the booming stablecoin ecosystem would increase private sector demand for U.S. Treasury bonds, thereby reducing government borrowing costs, Dudley believes this expectation is difficult to achieve. He pointed out that stablecoin issuers' purchases of Treasury bills are unlikely to grow as rapidly as Bessett suggested, primarily due to factors such as the time required for regulatory implementation, the GENIUS Act prohibiting interest payments on stablecoins, the high turnover rate caused by the immediacy of stablecoin payments, and potential foreign restrictions on the use of dollar-denominated stablecoins. Additionally, even if stablecoin demand increases, it would not significantly reduce the Treasury's short-term financing costs. Instead, it would lead to a decrease in the Federal Reserve's remittances to the Treasury due to reduced demand for dollar cash.
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