Stablecoin yields will bring fresh money to US banks: White House's Witt

Global demand for the US dollar is “massive,” and stablecoin yields will only bring more interest to the currency, argued the White House crypto chief.

Stablecoin yield providers will inject more capital into the US banking system, argues White House Council of Advisors for Digital Assets executive director Patrick Witt, amid debate over whether stablecoin yields will draw deposits away. 

“Foreigners exchange local currency for stablecoins from a US-based issuer,” Witt said in an X post on Wednesday, adding that “global demand for USD is massive.”

“That is net new capital entering the American banking system,” Witt said. Most US stablecoin issuers hold US dollars or US Treasuries to back each token issued.

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