Bloomberg: Wall Street Questions the Effect of Stablecoins, Asserts It's Too Early to Change the Game

According to Bloomberg, after the U.S. passed the first stablecoin legislation, the GENIUS Act, there is a clear divide on Wall Street regarding whether stablecoins can truly enhance the demand for the dollar and bring new buyers to short-term U.S. Treasury bonds. Strategists from institutions like JPMorgan, Deutsche Bank, and Goldman Sachs generally believe that it is too early to claim that stablecoins are game changers.

U.S. Treasury Secretary Yellen estimates that the stablecoin market will grow from the current $300 billion to $3 trillion by 2030, which could increase demand for short-term government bonds. However, skeptics point out that the funds for stablecoins mainly come from existing sources and may only be shifting bondholders rather than creating new demand.