TechFlow news, July 30 — According to Zhikong Finance, Everbright Securities published a research report stating that on one hand, the characteristics of dollar stablecoins help expand the functionality and use cases of the U.S. dollar, consolidating and enhancing the dollar's position within the international monetary system, thus prolonging the dominance of the U.S. dollar. On the other hand, by being tied to U.S. Treasuries, dollar stablecoins help partially alleviate the U.S. government's debt burden. However, dollar stablecoins are essentially an extension of U.S. dollar credit and do not fundamentally resolve the twin deficits issue of the U.S. dollar. In the long run, they may instead increase risks: first, dollar stablecoins are issued against short-term bonds, failing to address the rollover of medium- and long-term bonds—currently, medium- and long-term Treasuries account for 70% of outstanding U.S. national debt; second, the expansion of dollar stablecoin scale will intensify instability in the short-term Treasury market and weaken the effectiveness of macroeconomic policy control.
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