According to Deep Tide TechFlow news, on October 31, Decrypt reported that 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 about $120 billion in U.S. Treasury 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 major stablecoins face a run, it could trigger a sell-off in the Treasury bond market. Therefore, it suggests emulating the late 19th-century practice of replacing privately issued currency with government-backed central currency, ultimately replacing private stablecoins with central bank digital currency (CBDC).
It is worth noting that there is controversy surrounding CBDC in the U.S. political arena. Many Republican lawmakers oppose its development, and Trump has pledged to prevent the launch of CBDC if elected again. However, reports indicate that the crypto project supported by Trump, World Liberty Financial, is planning to issue a stablecoin, which contrasts sharply with the Treasury's recommendations.