"U.S. Debt Dilemma: Could Stablecoins Be a New Currency Cover-Up?"

A top Russian official has alleged that the United States is leveraging cryptocurrency and gold to mitigate the risks associated with its growing $35 trillion national debt, describing these assets as alternative mechanisms to the traditional global currency system. Speaking at the Eastern Economic Forum in Vladivostok, Anton Kobyakov, a senior advisor to Russian President Vladimir Putin, stated that the U.S. is attempting to "rewrite the rules of the gold and cryptocurrency markets" to address the declining trust in the dollar. Kobyakov emphasized that the U.S. could eventually transfer its debt into stablecoins and devalue it to "start from scratch" [1].

The comments come amid a backdrop of increasing U.S. federal debt, which has surged past $37.43 trillion as of recent Treasury Department data, more than tenfold since 1981. Kobyakov compared Washington’s potential actions to historical precedents such as the 1930s and 1970s, when the U.S. addressed financial issues by shifting burdens onto global markets. In this case, he argued, the U.S. might be using the “crypto cloud” to offload its debt pressures [2].

Critics and analysts have long debated how stablecoins might influence the global financial landscape. While some, like U.S. Treasury Secretary Scott Bessent, argue that stablecoins can reinforce U.S. dollar dominance, others fear they could destabilize traditional systems. Recent developments in U.S. legislation, including the signing of the GENIUS Act by President Donald Trump, indicate a growing regulatory acceptance of stablecoins and their integration into the financial system [1]. The act seeks to establish a clear framework for stablecoin issuance and trading, aiming to bolster confidence and control in the sector.

The U.S. government has also seen potential in using stablecoins to support its debt instruments, according to former House Speaker Paul Ryan, who highlighted that such assets could help maintain demand for U.S. debt and reduce the risk of a failed auction. This strategy, Ryan noted, would also serve as a way to "keep up with China." However, Kobyakov's perspective challenges this view, suggesting that the U.S. might be using stablecoins to devalue its debt rather than reinforce the dollar’s position [2].

Meanwhile, Russia has been exploring its own stablecoin initiatives. In June, state media reported that a ruble-backed stablecoin—A7A5—was under development and planned for a launch on the Tron blockchain. This move is seen as an effort to reduce dependence on U.S. dollar stablecoins like Tether, particularly in trade settlements with countries such as China and India. Although Russia banned crypto payments in 2022, it has since permitted financial institutions to offer crypto-based products to accredited investors, signaling a more open stance toward the sector [2].

The ongoing U.S. and Russian efforts to engage with stablecoins and gold highlight the growing strategic importance of digital assets in global financial and geopolitical dynamics. As both nations seek to reshape their economic approaches amid rising debt and currency uncertainties, the role of cryptocurrencies may become increasingly central to the evolution of the global monetary system.

Source:

[1] Putin Advisor Accuses US of Using Crypto, Gold to Escape (https://finance.yahoo.com/news/putin-advisor-accuses-us-using-214522644.html)

[2] Putin Advisor Says US Is Using Stablecoins To Devalue Its (https://cointelegraph.com/news/us-is-using-stablecoins-devalue-debt-putin-advisor)