US Plans Overseas Push for Dollar Stablecoins to Counter China, EU CBDCs

The Trump administration is reportedly exploring an initiative to promote dollar-backed stablecoins internationally, aiming to reinforce the US dollar's status as the world's reserve currency. According to a Wednesday Bloomberg report citing sources familiar with the plans, the effort could involve joint ventures with private-sector stablecoin companies and coordination across several federal agencies, including the Treasury Department, the State Department, and the US International Development Finance Corporation (DFC). Officials believe expanding global use of dollar-denominated stablecoins could simultaneously boost demand for US Treasurys, which serve as the primary reserve asset backing most stablecoins.

The reported overseas push comes as competing nations accelerate their own digital payment infrastructure. China's digital yuan is already operational through Project mBridge, a cross-border central bank digital currency (CBDC) platform, while the European Central Bank is preparing a 12-month digital euro pilot scheduled to begin in the second half of 2027. These moves have added urgency to US efforts to maintain dollar dominance in the rapidly evolving digital payments landscape. Cointelegraph reached out to the Treasury, the DFC, and several US-based stablecoin issuers for comment but did not receive responses before publication.

Senior US officials have increasingly tied stablecoin growth to broader geopolitical and financial strategy. In February 2025, then-White House crypto and AI czar David Sacks said stablecoins could "extend the dollar's dominance internationally" and generate trillions in additional demand for US government debt. Treasury Secretary Scott Bessent echoed this position in July 2025, citing the GENIUS Act as a tool to strengthen the dollar's reserve currency status. The Treasury moved forward on August 17 with a notice of proposed rulemaking seeking public comment on provisions governing the issuance, offering, and sale of payment stablecoins under the Act's framework.