#StablecoinPayments For the first time ever, the Treasury Borrowing Advisory Committee discusses stablecoins as a "new payment mechanism" and a potentially huge source of demand for US T-Bills.
Key observations:
1. Stablecoin issuers currently hold >$120bn in T-bills
2. Rapid growth in stablecoins could lead to incremental demand of ~$900BN for T-Bills (size of Bill market today is $6.4TN).
3. If stablecoins experience exponential growth, demand for USTs should be correlated, likely at the expense of bank deposits
4. Stablecoins could grow to $2 trillion by 2030 in response to "continued market and regulatory breakthroughs."
5. Stablecoins could disrupt traditional banks by drawing away deposits.source from x ( twiter)