U.S. President Donald Trump has been advised to issue his proposed $2,000 stimulus in stablecoins instead of traditional cash payments. A crypto firm said the move could start a bull run across digital assets.
Calls Grow for Trump’s $2,000 Stimulus to Be Issued in Stablecoins
Recently, Trump announced that his administration intends to send a minimum of $2,000 per adult. Tariffs charged on foreign imports fund this. The president referred to the move as “a kind of dividend” for American taxpayers. He further added that this would exclude high-income earners.
Crypto firm BowTiedBull said the “smartest thing Trump could do” would be to distribute the $2,000 stimulus using stablecoin payments. That, he said, could send the digital asset industry “into the stratosphere.”
In recent years, stablecoins have multiplied. Their ability to move money across borders instantly and cheaply has made them an essential pillar of the crypto market.
Trump added that the funds came from “trillions of dollars” generated by tariffs and record investments flowing into U.S. manufacturing. “A dividend of at least $2,000 a person will be paid to everyone,” he said. The news came after Democratic victories in local and state elections.
During the pandemic, the Trump administration approved two rounds of stimulus checks amounting to more than $814 billion in relief.
According to IRS data, there were 476 million payments for individuals earning up to $75,000 and couples earning up to $150,000. Those measures helped stabilize an economy in downturn. This also coincided with Bitcoin’s surge from $10,000 to over $30,000 by the end of 2020.
Experts argue that the new disbursement of these payments as stablecoins would mirror a similar pattern that could attract capital inflow into crypto markets.
Bank of England Signals Softer Stance
In a related development, the Bank of England proposed new guidelines that would let stablecoin issuers invest up to 60% of their reserves in short-term government debt.
The decision suggests the BoE’s softer stance toward digital currencies after its earlier call for issuers to hold 100% of assets with the central bank.
Besides, the country had also been making positive efforts to get its economy stabilized. For example, the Bank of England lowered the rate of interest to accommodate growth.
Sarah Breeden, Deputy Governor for Financial Stability, called the new framework a “pivotal step.”
Source: https://coingape.com/trump-urged-to-offer-2000-stimulus-in-stablecoins-firm-says-it-could-ignite-bull-run/
