Let us read it for you. Listen now. Your browser does not support the audio element.
I always had an interest in technology and economics. At 14, I launched what became the largest dial-up modem bulletin board system in south Arkansas and was later invited by the local college to test a new tool called the Internet; this involved a lot of staring at a black-and-white screen. I went on to graduate from Hendrix College with a bachelor of arts degree in economics and business.
Today, while I practice medicine as an ophthalmologist, I also work in real estate and am especially interested in how blockchain technology can modernize finance while preserving the core principles on which it is founded. My daughters and I buy, sell, mine, stake, borrow, and lend cryptocurrency, and have executed thousands of crypto transactions. Having lived through the lack of oversight that fueled several catastrophic crypto-related collapses, I have narrowly avoided significant financial losses.
I share these experiences because they shape my perspective as I respond to the recent insightful article “How to make sense of stablecoins” (Arkansas Democrat-Gazette, Sept. 21, 2025). While there is so much to write on this topic, the required brevity of a newspaper article only affords me the space to respond to a few points.
First, to recap, a stablecoin is a digital token pegged to the U.S. dollar. Each coin is backed by reserves–most often U.S. cash and short-term Treasury bills (T-bills). Because they move on blockchain networks, stablecoins can be transferred at any time, day or night, including weekends and holidays. On some networks, transfers settle in under a second and can cost less than a cent.
The market for dollar-pegged stablecoins is already large, with about $250-260 billion in circulation. Issuers keep significant amounts of their reserves in U.S. Treasuries. Analysts estimate that stablecoin reserves account for roughly $200 billion in T-bills and repos, about 2 percent of the overall Treasury market. One major issuer, Tether, disclosed “approaching $120 billion” in Treasury holdings in 2025–an amount comparable to what some nations hold. For perspective, U.S. Treasury data from July 2025 show that China holds about $730 billion in U.S. Treasury securities.
It makes intuitive sense to me that the more we expand access to U.S. debt through stablecoins, the more people will in effect be buying into U.S. debt. Stablecoins allow individuals worldwide–many of whom cannot directly access U.S. markets–to hold digital dollars backed by Treasuries. In this way, stablecoins expand the pie of global investors who indirectly support U.S. government borrowing. More buyers mean stronger demand, and stronger demand drives yields down. Yield is simply the effective interest rate the government pays to borrow. Lower yields mean the U.S. can refinance or issue new debt at cheaper rates, directly reducing the annual cost of servicing our national debt.
This is not only theory. A 2025 Bank for International Settlements study found that large inflows into stablecoins lowered yields on three-month Treasury bills by about 2 to 2.5 basis points within 10 days. While small in percentage terms, applied across trillions of dollars of debt, these savings are meaningful.
It is also worth noting that stablecoins are increasingly discussed in international policy circles. At the recent Eastern Economic Forum session in Russia, one of President Putin’s economic advisers expressed concern that the United States could use stablecoins and other crypto innovations to influence or reduce the real burden of its debt. For a short translated version of the discussion, see Andrei Jikh’s YouTube video titled “Russia Says U.S. Planning $37 Trillion Crypto Reset.”
While the recently enacted GEN-IUS Act may not be perfect (what legislation ever is?), it provides a critical national regulatory framework for payment stablecoins, requiring one-to-one backing with high-quality reserves and regular disclosures. This oversight makes it more likely that adoption will grow safely. As it does, the U.S. benefits twice: The dollar’s global role is reinforced, and reserve demand for Treasuries provides a structural tailwind for government financing.
Stablecoins are not a cure for the national debt. But by making dollars and dollar-backed debt available to anyone with a phone–24/7, across borders, and at minimal cost–they expand the pool of Treasury buyers. Expanded access strengthens demand, stronger demand lowers yields, and lower yields mean less taxpayer money spent on interest. Even modest reductions, compounded across the national debt, can save the government very large sums over time.
I may not fully grasp every aspect of this evolving relationship between traditional finance and crypto. I continue to shape my views through both experience and ongoing study, and welcome others to help deepen my understanding of the ideas discussed here.
Christian Hester can be reached at [email protected] to discuss the evolving role of blockchain technology in finance and real estate.
