Why the US Government Wants to Set Up a Stablecoin in Web3
With the rapid development of blockchain technology and Web3 applications, the US government is showing increasing interest in stablecoins. In recent years, not only tech giants but also financial institutions have been exploring the issuance and adoption of stablecoins. Now, even the US government is drafting policies and researching the possibility of launching a government-backed stablecoin. So why is the US government paying such close attention to stablecoins in the Web3 space?
Here are the strategic reasons behind it:
1. Preserving the Dominance of the US Dollar
- The Dollar Is Being Challenged: China is pushing its digital yuan (e-CNY), and many emerging markets are turning to cryptocurrencies for cross-border payments, potentially threatening the dollar’s global dominance.
- Stablecoins as a Digital Extension of the Dollar: A government-backed stablecoin would help ensure the US dollar remains the primary currency for payments and settlements in the Web3 world, reinforcing its position in the global financial system.
2. Securing Leadership in the Web3 Financial Infrastructure
- Web3 Is Becoming the Next-Generation Financial System: Built with smart contracts, decentralized identity, and DeFi platforms, Web3 is reshaping lending, payments, and asset issuance.
- A Trusted, Regulated Stablecoin Could Lead the Way: Government-issued or regulated stablecoins could replace unregulated ones like USDT, improving market transparency and safety.
3. Improving Cross-Border Payments and Regulatory Oversight
- Current Systems Are Inefficient and Costly: Blockchain and stablecoins enable peer-to-peer payments with reduced fees and faster settlement.
- Enhanced Regulatory Control: Rather than allowing private stablecoins to grow unchecked, the US government seeks to create a regulatory framework to prevent money laundering, terrorism financing, and fraud.
4. Countering the Monetary Ambitions of Big Tech
- Facebook (Meta)’s Libra/Diem Was a Wake-Up Call: If tech companies launch widely adopted stablecoins, it could weaken central banks’ control over monetary policy.
- Government Must Set the Rules: Issuing an official or licensed stablecoin is a strategic defense against corporate-driven currencies.
5. A Stepping Stone Toward a US Central Bank Digital Currency (CBDC)
- CBDC Development Is Still in Progress: Launching a digital dollar requires time for testing and policy-making.
- Stablecoins Serve as a Testbed: Collaborating with commercial banks and regulated platforms to issue stablecoins allows the government to experiment and gather insights before rolling out a full CBDC.

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