As the global financial world moves digital, countries around the world rush to develop their own central bank digital currencies (CBDCs).

Both the UK and EU are expected to roll out their respective CBDCs in the late 2020's, while US president Donald Trump says no to an American CBDC.

Instead, he has his eyes on stablecoins. Why?

• CBDCs are politically toxic. They are seen as authoritarian, an invasion of privacy, and ultimately a tool for excessive government control in an aspect of life that the public depends upon everyday.

• It preserves America's dual banking system of national and state banks which could be destabilised if a Federal Reserve digital currency were to be issued.

• Stablecoins already exist, have strong demand, and are faster and cheaper to deploy.

• Thanks to the GENIUS Act (covered later), stablecoins create short-term demand for US debt markets.

• Rhetorically, the US can claim it protects "individual privacy" and avoid the stigma that comes with CBDCs, a political optics win.

"We are going to keep the US the dominant reserve currency in the world, and we will use stablecoins to do that," said Treasury Secretary Scott Bessent.

So in January 2025, Trump signed an executive order prohibiting the creation of a central bank digital currency.

In the order named "Strengthening American Leadership in Digital Financial Technology," it states the administration will "protect Americans from the risks of Central Bank Digital Currencies" by "prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States."

So how does the United States plan to use stablecoins as their de-factor CBDC?

It starts with the GENIUS Act.

The GENIUS Act, a stablecoin regulatory legislature passed in July 2025, requires all USD-denominated stablecoins, like Tether's USDT, to hold 1:1 reserves in US treasuries or cash.

While this law also helps the US dollar to hold onto its global dominance by propping up short-term debt markets (as stablecoins are forced to hold US treasuries), it brings stablecoins into the framework of regulated financial instruments under US control.

For instance in December 2025, Ripple received conditional approval to form Ripple National Trust Bank, according to a news release from the granting authority, the U.S. Office of the Comptroller of the Currency.

What does this mean?

"Ripple is positioning itself as financial infrastructure, sitting at the intersection of payments, custody, stablecoins, and cross-border liquidity — with federal oversight," said crypto commentator, Keith D.

"It’s about who controls liquidity in the next financial system."

The underlying assets in question are US treasuries and cash.

Ripple are also pursuing a Federal Reserve "master account" which would allow Ripple to hold its RLUSD reserve assets directly at the Federal Reserve, according to CCN.

If approved, this would "would place RLUSD and related custody operations under:

• Federal oversight via the OCC.

• State supervision via the New York Department of Financial Services (NYDFS)." as per CCN.

Effectively turning a blockchain-based stablecoin, RLUSD in this case, into a digital banking asset that is under strict government oversight, backed 1:1 with US assets, and institutionally integrated into traditional financial infrastructure nationwide.

For example, Ripple is partnering with Mastercard, Gemini, and WebBank "to integrate stablecoins into credit card transactions," according to DL News.

Tether, the worlds largest stablecoin issuer, aims to launch USAT, a US regulated, dollar-backed stablecoin "designed specifically for the U.S. market to comply with federal regulations set by the GENIUS Act's requirements," according to Coindesk.

"For the U.S. market, you need to create a more professional and digital approach to money that can compete with PayPal and so on." said Tether CEO, Paolo Ardoino.

Stablecoins are no longer neutral cryptocurrencies, but now macro-financial actors aligned with state power and increasingly integrated into the centralised, traditional banking infrastructure of the United States under the guise of "freedom".

US dollar stablecoins are America's new state-governed digital money.

As the global financial world moves digital, countries around the world rush to develop their own central bank digital currencies (CBDCs).

Both the UK and EU are expected to roll out their respective CBDCs in the late 2020's, while US president Donald Trump says no to an American CBDC.

Instead, he has his eyes on stablecoins. Why?

• CBDCs are politically toxic. They are seen as authoritarian, an invasion of privacy, and ultimately a tool for excessive government control in an aspect of life that the public depends upon everyday.

• It preserves America's dual banking system of national and state banks which could be destabilised if a Federal Reserve digital currency were to be issued.

• Stablecoins already exist, have strong demand, and are faster and cheaper to deploy.

• Thanks to the GENIUS Act (covered later), stablecoins create short-term demand for US debt markets.

• Rhetorically, the US can claim it protects "individual privacy" and avoid the stigma that comes with CBDCs, a political optics win.

"We are going to keep the US the dominant reserve currency in the world, and we will use stablecoins to do that," said Treasury Secretary Scott Bessent.

So in January 2025, Trump signed an executive order prohibiting the creation of a central bank digital currency.

In the order named "Strengthening American Leadership in Digital Financial Technology," it states the administration will "protect Americans from the risks of Central Bank Digital Currencies" by "prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States."

So how does the United States plan to use stablecoins as their de-factor CBDC?

It starts with the GENIUS Act.

The GENIUS Act, a stablecoin regulatory legislature passed in July 2025, requires all USD-denominated stablecoins, like Tether's USDT, to hold 1:1 reserves in US treasuries or cash.

While this law also helps the US dollar to hold onto its global dominance by propping up short-term debt markets (as stablecoins are forced to hold US treasuries), it brings stablecoins into the framework of regulated financial instruments under US control.

For instance in December 2025, Ripple received conditional approval to form Ripple National Trust Bank, according to a news release from the granting authority, the U.S. Office of the Comptroller of the Currency.

What does this mean?

"Ripple is positioning itself as financial infrastructure, sitting at the intersection of payments, custody, stablecoins, and cross-border liquidity — with federal oversight," said crypto commentator, Keith D.

"It’s about who controls liquidity in the next financial system."

The underlying assets in question are US treasuries and cash.

Ripple are also pursuing a Federal Reserve "master account" which would allow Ripple to hold its RLUSD reserve assets directly at the Federal Reserve, according to CCN.

If approved, this would "would place RLUSD and related custody operations under:

• Federal oversight via the OCC.

• State supervision via the New York Department of Financial Services (NYDFS)." as per CCN.

Effectively turning a blockchain-based stablecoin, RLUSD in this case, into a digital banking asset that is under strict government oversight, backed 1:1 with US assets, and institutionally integrated into traditional financial infrastructure nationwide.

For example, Ripple is partnering with Mastercard, Gemini, and WebBank "to integrate stablecoins into credit card transactions," according to DL News.

Tether, the worlds largest stablecoin issuer, aims to launch USAT, a US regulated, dollar-backed stablecoin "designed specifically for the U.S. market to comply with federal regulations set by the GENIUS Act's requirements," according to Coindesk.

"For the U.S. market, you need to create a more professional and digital approach to money that can compete with PayPal and so on." said Tether CEO, Paolo Ardoino.

Stablecoins are no longer neutral cryptocurrencies, but now macro-financial actors aligned with state power and increasingly integrated into the centralised, traditional banking infrastructure of the United States under the guise of "freedom".

US dollar stablecoins are America's new state-governed digital money.