Stablecoins, a type of cryptocurrency pegged to fiat currencies like the U.S. dollar, could help stave off a potential U.S. debt crisis by becoming a reliable source of new demand for U.S. government debt[1]. According to the Treasury Department and DeFi Llama, dollar-backed stablecoins are already an important net purchaser of Treasurys, sitting just outside the top 10 countries holding U.S. government debt[1]. If the stablecoin sector continues to grow, it could become one of the largest buyers of U.S. debt[1].

Sources [1] Crypto Could Stave Off a U.S. Debt Crisis https://www.aei.org/center-on-opportunity-and-social-mobility/crypto-could-stave-off-a-u-s-debt-crisis/ [2] Crypto Convulsions, Digital Delusions, and the Inexorable Logic of ... https://monthlyreview.org/2022/12/01/crypto-convulsions-digital-delusions-and-the-inexorable-logic-of-finance-capitalism/ [3] The Economic and National Security Impact of Offshoring ... https://www.aei.org/events/the-economic-and-national-security-impact-of-off-shoring-cryptocurrency/ [4] Inside latest crypto firm paying billions to end legal troubles - CNBC https://www.cnbc.com/2024/06/16/inside-latest-crypto-firm-paying-billions-to-end-legal-troubles-.html [5] Remarks by Deputy Secretary of the Treasury Wally Adeyemo at the ... https://home.treasury.gov/news/press-releases/jy1934