U.S. Debt Move to Stablecoins Could Trigger Global Financial Reset, Putin Advisor Warns

A Russian presidential advisor has raised alarms that the United States is reportedly planning to shift its $35 trillion national debt into stablecoins as a means of devaluing it, potentially reshaping global financial dynamics. Anton Kobyakov, a senior advisor to President Vladimir Putin, made these claims during the Eastern Economic Forum in Vladivostok. The proposed move is part of a broader strategy to address Washington’s mounting fiscal challenges, with Kobyakov drawing historical parallels to the 1930s and 1970s, when the U.S. restructured monetary systems by abandoning the gold standard to stabilize its economy.

According to Kobyakov, the U.S. is leveraging developments in cryptocurrency to create a "reset" of global finance, moving debt into digital assets and effectively reducing its real-world value over time. He emphasized that this would not only alleviate American fiscal pressures but also diminish global confidence in the U.S. dollar. “Once part of the U.S. national debt is placed into stablecoins, Washington will devalue that debt,” he warned, suggesting that the move could lead to widespread financial instability if not carefully managed.

The stablecoin market has already demonstrated rapid growth and increasing influence in global finance. As of now, the U.S. dollar-denominated stablecoin market has reached $225 billion, representing about 7% of the broader $3 trillion cryptocurrency ecosystem. J.P. Morgan projects that the market could expand to between $500 billion and $750 billion in the coming years, driven by regulatory developments like the GENIUS Act, signed into law in July 2025. The Act establishes a federal framework for stablecoin regulation and has already spurred innovation in how digital assets are integrated into traditional financial systems.

However, the rise of stablecoins is not without risks. Bank of America analysts have highlighted that stablecoin demand for short-term U.S. Treasury bills is growing, with potential allocations expanding by $25 billion to $75 billion over the next year. While this demand is not yet large enough to significantly disrupt Treasury market dynamics, it is seen as a growing challenge to money market mutual funds, which traditionally attract similar yield-seeking investments. The competition is expected to intensify as regulatory changes and technological advancements allow for greater flexibility in how stablecoins operate.

Despite their potential, stablecoins remain a subject of intense debate among economists and policymakers. Nobel laureate Jean Tirole has raised concerns about their role in shadow banking, warning that they could replicate the risks that nearly caused a global financial crisis in 2008. Tirole and others argue that the lack of government guarantees and inadequate regulatory oversight make stablecoins inherently unstable. “If these private tokens collapse, the public will pick up the bill,” he warned, emphasizing the potential need for taxpayer-funded bailouts should the market experience a systemic failure.

The geopolitical implications of stablecoins are also significant. If the U.S. succeeds in shifting its debt into stablecoins, it could weaken the dollar’s dominance and reduce the authority of central banks to control monetary policy. This shift could accelerate the fragmentation of global financial systems, with private actors playing a larger role in managing liquidity and currency. For countries like China, this could open opportunities to expand their influence in cross-border trade through alternative currencies and digital platforms.

As the stablecoin ecosystem continues to evolve, the need for robust regulatory frameworks and transparent governance mechanisms becomes increasingly urgent. While the GENIUS Act represents a step toward formalizing stablecoin regulation in the U.S., many questions remain about how best to manage the risks associated with these digital assets. For now, the U.S. debt dilemma and the growing influence of stablecoins present a complex interplay of financial innovation, geopolitical strategy, and regulatory challenges that will shape the future of global monetary systems.

Source:

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