Stablecoins are the 'Trojan Horse' of the U.S. government to benefit TradFi, which will impact Bitcoin, says Arthur Hayes.
$BTC 🐴🐴🐴🐴✨✨✨
Hayes claims that the new stablecoin policies, disguised as innovation, represent an initiative to benefit the government and traditional financial institutions, distancing themselves from the promise of decentralized freedom of cr
#BTCWhaleMovement The advancement of stablecoin regulation in the U.S. Congress is an initiative of the Donald Trump government and big banks to ensure and expand the hegemony of the dollar in the global financial system, while simultaneously consolidating the power of traditional financial institutions, says Arthur Hayes, co-founder of Bitmex, in a post on his personal blog.
For Hayes, stablecoins are being used as a “Trojan Horse”: promoted under the guise of supporting innovation, they have been turned into an instrument to finance the growing U.S. government debt, resulting in the centralization of finance and to the detriment of the cryptocurrency industry.
With an annual federal deficit approaching 2 trillion dollars and the need to refinance another 3.1 trillion dollars in debts due by 2025, the U.S. government is under pressure to find low-cost funding sources. Scott Bessent, U.S. Treasury Secretary, saw stablecoins as an opportunity.