Stablecoins Emerge as a Strategic U.S. Asset Amid BRICS De-dollarization Push

According to a report from The Street, Paolo Ardoino, billionaire and CEO of Tether, emphasized that stablecoins may serve as a key instrument in countering BRICS nations’ efforts to reduce reliance on the U.S. dollar. Ardoino noted that wherever Tether introduces its USDT stablecoin, it fosters broader usage of the U.S. dollar. Unlike highly volatile cryptocurrencies like Bitcoin, stablecoins are digital assets pegged to traditional currencies such as the U.S. dollar or to commodities like gold, maintaining a more consistent value—USDT, for instance, maintains a 1:1 parity with the U.S. dollar.

The recent enactment of the GENIUS Act by President Donald Trump on July 19 is expected to significantly boost the $265.6 billion stablecoin sector. This legislation provides a formal regulatory framework allowing private entities to issue stablecoins, which until now have operated under ambiguous legal conditions. The law mandates compliance with anti-money laundering regulations and requires transparent monitoring of transactions and suspicious activity reporting.

As highlighted by NBC News, the GENIUS Act marks a shift in U.S. policy that may strategically reinforce dollar dominance in light of de-dollarization efforts by emerging markets, including BRICS nations—Brazil, Russia, India, China, and South Africa. These countries have increasingly moved away from the dollar, favoring gold reserves and alternative currencies. President Trump has previously warned of potential 100% tariffs against BRICS members should they continue down this path.

Ardoino, who attended the White House signing ceremony for the bill, elaborated on these dynamics during an interview on Fox Business’s "Mornings with Maria." He argued that stablecoins play a vital role in upholding the global standing of the U.S. dollar, directly challenging the de-dollarization objectives of BRICS.

In response to a question from host Maria Bartiromo regarding U.S. Treasury bond demand, Ardoino affirmed that stablecoins are contributing to increased interest. He explained that in countries grappling with inflation, citizens turn to USDT to preserve purchasing power. This growing adoption indirectly boosts global demand for U.S. dollars and, consequently, for U.S. Treasury bonds—despite recent large-scale bond sell-offs by countries like China and Japan.