Markets Treasury Secretary Scott Bessent defends dollar dominance and U.S. economic resilience amid rising concerns about government debt yields and the global economic landscape.
Bessent counters negative views on the U.S. economy by emphasizing growth and dollar strength.
By James Van Straten | Edited by Jamie Crawley Updated 34 minutes ago Published 1 hour ago 2 min read Make preferred on Share Share this article Copy link X (Twitter) LinkedIn Facebook Email Make preferred on
Treasury Secretary Scott Bessent (Getty Images) Show- Bessent highlighted that the U.S. dollar accounts for 89.2% of foreign-exchange transactions, underscoring its dominance and the rise of dollar-pegged stablecoins, alongside robust economic indicators.
- He clarified that the purpose of Treasury bond buybacks is to enhance market liquidity and manage debt maturities, dismissing suggestions that they aim to suppress yields as the 10-year yield nears 5%.
- Bessent framed Saudi Arabia's withdrawal from the China-backed mBridge digital currency initiative as a testament to dollar supremacy, despite the kingdom stating it had merely concluded a scheduled trial.
Treasury Secretary Scott Bessent leveraged the rise of stablecoins and metrics related to dollar-denominated transactions to advocate for the U.S. economy's strength, aiming to alleviate concerns over increasing government debt yields and evolving international payment systems.
In response to a recent New York Times article that highlighted potential risks to the U.S. financial framework, Bessent referenced data, including insights from conservative commentator Lawrence Kudlow, to stress the dollar's sustained global influence. He noted that the dollar features in 89.2% of foreign-exchange transactions, with most stablecoins linked to it.
Bessent also pointed out record median household incomes, a historically low official poverty rate, ongoing job growth, and the Atlanta Fed's projection of 5.1% annualized GDP growth for the third quarter.
His defense comes amid a backdrop of U.S. Treasury yields hitting multi-year highs, with the 10-year yield reaching 5%. The Treasury has been repurchasing long-term bonds, prompting critics to accuse Bessent of trying to manipulate yields. He refutes this claim, asserting that the buybacks are meant to bolster liquidity and manage the maturity profile rather than influence a Treasury market exceeding $30 trillion.
Bessent also mentioned Saudi Arabia's exit from the mBridge platform, backed by China, as evidence of the dollar's preeminence. However, Saudi Arabia clarified that its involvement concluded after completing a proof of concept in May 2025, with the project still advancing elsewhere, making the exit more symbolic than indicative of a failing initiative.
Newsletters
Crypto Daybook Americas - The latest moves in crypto markets, in context Market analysis for crypto traders and investors. Preview Sign up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy. Stablecoins Latest Crypto News- 1Bitmine bought $75 million ether as Tom Lee says institutions are still underweight crypto 50 minutes ago
- 2Google and Apple seek crypto talent as Big Tech eyes stablecoin and tokenization rails 1 hour ago
- 3Strategy returns to bitcoin buys, adding $75 million of BTC last week 1 hour ago
- 4Bitcoin's 44% gain in third quarter teases full-blown crypto bull run 2 hours ago
- 5Perp futures linked to 'bitcoin VIX' debut on Hyperliquid 2 hours ago
- 6ECB deploys Pontes platform to settle wholesale tokenized assets in central-bank money 2 hours ago
- 7Bitcoin hits $85,000 as short squeeze forces out $648 million of bearish bets 3 hours ago
- 8X sues its own users for running a fake bitcoin news bot farm 3 hours ago
- 9Crypto enjoys bullish bounce post-Fed rate hike: Crypto Week Ahead 4 hours ago
- 10Hana Bank issues South Korea’s first digital bond using Euroclear’s blockchain 5 hours ago
The Definitive Stablecoin Landscape Series: Asia Pacific
The Definitive Stablecoin Landscape Series: Asia Pacific
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
Why it matters:
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
View Full Report More From Markets