According to Deep Tide TechFlow, on October 31, the U.S. Treasury released its fourth-quarter financial report, expressing concerns about the rapid growth of the stablecoin market. The report shows that stablecoin issuers currently hold approximately $120 billion in U.S. government bonds, with Tether holding nearly $81 billion, which the Treasury believes may pose systemic risks.
The report points out that the stablecoin market accounts for over 80% of cryptocurrency trading volume, with USDT's 24-hour trading volume reaching $53 billion. The Treasury is concerned that if a major stablecoin experiences a bank run, it could trigger a sell-off in the treasury bond market. Therefore, it recommends emulating the late 19th-century practice of replacing privately issued currency with government-backed central currency, ultimately replacing private stablecoins with central bank digital currencies (CBDCs).
It is noteworthy that CBDCs are controversial in the U.S. political arena. Many Republican lawmakers oppose their development, and Trump has promised to stop the launch of CBDCs if elected again. However, reports indicate that the crypto project World Liberty Financial, which Trump supports, is planning to issue a stablecoin, which contrasts sharply with the Treasury's recommendations.