U.S. Crypto Expert Max Keiser Warns of Potential Debt Crisis Given Projected $2 Trillion Stablecoin Market
🤨This ain't no bedtime story, mate. Let's dig into the hottest scoop from the US crypto scene – the stablecoin market boom!
Grab a cup of joe, 'cause it's about to get juicy!
The Stablecoin Gold Rush:
Hear this: the US Treasury is predicting that the stablecoin market could reach a whopping $2 trillion by 2028! Yes, you heard it right!
Take a closer look at the MEXC exchange's COO, Tracy Jin. She's betting that this boom could happen as early as 2026!
But wait, there's more! The US Treasury recently decided that stablecoin issuers would need to hold Treasury bills to back their digital coins. Yep, that means folks holding stablecoins indirectly own US Treasury bills!
On the flip side, Barry The B affirms that increased stablecoin usage could make banks raise interest rates for depositors. So, if you're stashing your cash under the mattress, it might lose some of its allure.
Stablecoins vs The Greenback:
Max the Bitcoin pioneer warns that the rise of stablecoins could exacerbate US debt levels and weaken the dollar's value. He claims that increased usage could mean the dollar getsflimsy, flimsy!
He also links the rise of stablecoins to the increase in national debt, thumbs his nose at Trump's debt reduction promises.
Standard Chartered's Head of Digital Assets Research, Geoff Kendrick, echoes the US Treasury's prediction but adds a twist. He believes the growth of stablecoins could demand $1.6 trillion more US Treasury bills by 2028, a chunk that would wipe out all the planned new Treasury bill issuance over that period!
Stablecoin USA:
Tether, the issuer of the world's largest stablecoin, USDT, is considering launching a US-only stablecoin by late 2025 or early 2026.
Paolo Ardoino, Tether CEO, spilled the beans in an interview, saying, "We're just spreading what we believe is the best product Uncle Sam ever made – the Almighty US dollar!"
Of course, more stablecoin adoption could help crypto gain legitimacy, making traditional assets, like the greenback, seem outdated. Institutional investors are already feeling the heat and have started transitioning from traditional assets to digital gold.
Chart of the Day:
USDT (blue), making up over 60% of the total stablecoin market cap, has exploded since November 2023, while the Federal Reserve's currency in circulation (red) has remained flat. This shows how quickly stablecoins are taking over the market!
Stay tuned for more crypto news, mate!
Here's a quick rundown of what's coming up today:
Byte-Sized Alpha
- eToro: Follow these easy steps, and you'll get a guaranteed $10 bonus! Just remember, it's high-risk investing, ya hear?
- Trump Administration news: Eric Trump announces World Liberty Financial's USD1 stablecoin integration with Tron at Token2049, with USD1 becoming the stablecoin of choice for MGX's $2 billion Binance investment.
- Bitcoin's performance: Bitcoin has been performing well despite economic uncertainty, hitting an all-time high in Argentina, suggesting it might be acting as a haven.
- Trump's crypto wealth: It's estimated that Trump's crypto wealth could account for 37% of his total assets, including the TRUMP meme coin and World Liberty Financial.
- Bitcoin ETFs: Bitcoin ETFs saw a $56 million outflow, marking the first dip in institutional demand since April 16.
- Robinhood's Q1 crypto revenue: Robinhood's Q1 crypto revenue doubled to $252 million, with trading volumes increasing by 28% YoY.
- Bitcoin approaching profitability: Bitcoin worth $61 billion is nearing profitability, with early bull signs appearing.
- Base surpassing Arbitrum: Base has overtaken Arbitrum to become the largest Ethereum Layer-2.
- AI agent tokens recovery: AI agent tokens have led the crypto market recovery, growing 39.4% over the past 30 days, outperforming meme coins and decentralized AI.
- In the forecast, the US Treasury predicts the stablecoin market could reach an astounding $2 trillion by 2028.
- Tether, the stablecoin issuer, plans to launch a US-only version of its popular USDT coin by late 2025 or early 2026.
- Max the Bitcoin pioneer suggests that the rise of stablecoins could lead to an increase in US debt levels and potentially weaken the dollar's value.
- Increased stablecoin usage could lead banks to raise interest rates for depositors, potentially decreasing the appeal of cash under the mattress.
- Stablecoins like Tether's USDT make up over 60% of the total stablecoin market cap and have grown significantly since November 2023.
- Tether's USDT growth contrasts with a flat increase in the Federal Reserve's currency in circulation over the same period, indicating the rapid rise of stablecoins in the market.
- As stablecoin adoption grows, traditional assets like the US dollar could become less relevant, prompting institutional investors to transition to digital assets.
- Trump Administration news involves Eric Trump announcing World Liberty Financial's USD1 stablecoin integration with Tron at Token2049, positioning USD1 as the preferred stablecoin for MGX's $2 billion Binance investment.
- Bitcoin ETFs saw a $56 million outflow, marking the first decrease in institutional demand since April 16.
- Robinhood's Q1 crypto revenue doubled to $252 million, with trading volumes increasing by 28% year over year, signaling potential growth in the crypto market by 2026.
