Analysis: stablecoin issuers such as Circle and Tether are devouring US Treasury bonds and may threaten the credit system

In the golden financial report, Fortune magazine reported that stable currency issuers such as Circle and Tether are devouring more US treasury bond bonds than most countries, which may reshape the US economy. Tether disclosed the latest data showing that it holds more than US $100 billion of US treasury bonds, surpassing countries such as the United Arab Emirates and Germany. Although supporters of cryptocurrencies believe that stablecoins will help consolidate the dominant position of the US dollar globally, critics warn that even if stablecoins only account for a small portion of the entire market, they may lead to financial instability in the banking industry, as stablecoins may drain funds from bank deposits, which are necessary liquidity for loans, and therefore may threaten the credit system.