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By Monica MUEMA
The Trump administration’s push for regulating cryptocurrencies is an attempt to establish market leadership, according to Fitch’s IBM in its latest predictions on the impact of the US president’s trade tariffs.
The GENIUS Act, the report notes, will enable stablecoins to come onshore to the US and will be backed by US Treasuries. Stablecoins enable immediate and low-cost digital payments, which are popular among consumers and vendors. The current market cap is about USD270bn, which is just under 1% of US GDP.
“This regulation could see global demand for stablecoins rise sharply over time as there is greater confidence and use in regulated stablecoins. A rise in stablecoins could lead to a rise in demand for the USD, which would be bullish over the longer term,” it says.