In a Truth Social post March 3, President Donald Trump declared that his administration would not allow U.S. commercial banks to defend their unique depositary role from “stablecoins.” “The CLARITY Act is being held up by the Banks, and that is unacceptable—We are not going to allow it,” Trump wrote. “We are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don’t get The Clarity Act taken care of.”
Stablecoins, coins supposed to be “worth” a US dollar, are blockchain entries with no value that any government will stand behind or recognize as debt; but Trump has been induced, by his Commerce Secretary and other creators of these coins, to believe that they are equivalent to dollars for all payments purposes. In fact, stablecoins’ spreading use is overwhelmingly in trading other cryptocurrencies on secret networks.
EIR reported already in 2017 that if such cryptocurrencies entered bank deposits as the GENIUS and CLARITY Acts intend, they will steadily rob those banks of their ability to lend, by moving their deposit base into non-banks or central banks—what is called “disintermediation of commercial banks”—and/or, by forcing those banks to hold back larger and larger loan reserves against stablecoin payment demands.
