Coin Bureau says Europe is trying to reduce the power of Tether because dollar stablecoins strengthen US financial dominance.
Key Points
Key Highlights:
- Every time people buy USDT, Tether buys more US Treasuries, increasing global demand for the US dollar
- Tether reportedly holds around $141 billion in US government debt, making it one of the world’s biggest Treasury holders
- Europe fears people and businesses could increasingly use dollar stablecoins instead of euros, weakening Europe’s monetary control
- The EU’s MiCA rules were designed to limit non-euro stablecoins like USDT through reserve requirements and transaction caps
- Under MiCA, large dollar stablecoins can be forced to stop issuing tokens inside Europe if activity becomes too high
- Exchanges like Coinbase, Binance, and Kraken already reduced or removed USDT access for European users
- Europe’s bigger goal is building a digital euro system controlled by the European Central Bank instead of private stablecoins
- At the same time, the US is supporting stablecoins because they increase demand for US debt and strengthen dollar dominance
- Circle and USDC are benefiting because they follow regulations, while Tether remains the main target due to its offshore structure and independence
Final Takeaway
Coin Bureau believes stablecoins are becoming part of a global financial power struggle, with Europe trying to slow dollar dominance while the US pushes it further through crypto.
