CEO and Co-founder @ Brico | FinTech nerd | Product and operations leader
The crypto circle has been abuzz about the #GENIUS Act and how it provides a regulatory clarity for #stablecoins. But what’s truly interesting to a policy nerd like me is the macro impact potential. Here’s what caught my eye 👇 🏛️ The U.S. government just quietly found a backdoor way to cover budget deficit: The GENIUS Act says: if you want to issue a stablecoin, you have to hold real dollars or ultra-safe U.S. debt (T-bills) behind every coin. Sounds simple. But here’s what that really means: Stablecoins now have to buy government debt constantly. That means more demand for Treasuries → cheaper borrowing for the government. It’s like selling more bonds without needing foreign buyers or the Fed. 📉 It could impact interest rates. As stablecoins buy short-term debt, those yields drop. But long-term rates might stay high or even rise. We could end up in a strange world where: Money moves faster and cheaper on-chain (inside the digital economy) But borrowing in the real economy for homes, small business loans actually gets more expensive. 🏦 It might make life harder for banks. Banks usually lend out your deposits. But if dollars move into stablecoins (which just sit in reserves), banks are left with: -Fewer deposits -More competition to attract funding -Less control over where money flows And when the Fed raises rates, it won’t work the same way because stablecoins don’t respond like banks do. #GENIUSAct #Stablecoins #Macro #FinTech #DigitalDollar #Treasuries #Banking #CryptoCompliance