Viewpoint: Stablecoin issuers such as Circle and Tether are swallowing up US debt and may threaten the credit system

Odaily Planet Daily News: Stablecoin issuers such as Circle and Tether are devouring more U.S. Treasury bonds than most countries, which may reshape the U.S. economy. Tether disclosed the latest data showing that it holds more than $100 billion in U.S. Treasury bonds, exceeding countries such as the UAE and Germany.

However, while cryptocurrency supporters believe that stablecoins will help consolidate the dollar's global dominance, critics warn that even if stablecoins only account for a small portion of the overall market, they could lead to financial instability in the banking industry because they could siphon funds from bank deposits, which are essential liquidity for lending, and thus threaten the credit system. (Fortune)