Scott Bessent Backs Dollar Dominance in Global Markets and Stablecoins

Treasury Secretary Scott Bessent pushed back against a pessimistic view of the U.S. economy, pointing to resilient growth, international demand for U.S. assets and the dollar’s continued position at the center of global finance.

Bessent cited the growing use of stablecoins and dollar-based trade data to argue that the U.S. economy remains strong, as concerns increase over rising government debt yields and changes to international payment systems.

His comments came in response to a recent New York Times report that highlighted structural vulnerabilities in the U.S. financial system. In a post on X, Bessent referenced data shared by conservative commentator Lawrence Kudlow, noting that the U.S. dollar is involved in 89.2% of foreign-exchange transactions. He also pointed out that most stablecoins are pegged to the U.S. dollar.

Bessent further cited several economic indicators, including a record median household income, a historically low official poverty rate, ongoing job growth and the Atlanta Federal Reserve’s 5.1% annualized estimate for third-quarter GDP.

His defense of the economy comes as U.S. Treasury yields have climbed to multiyear levels, with the 10-year yield reaching 5%. The Treasury has been buying back longer-dated bonds, prompting critics to argue that the policy is aimed at keeping yields down. Bessent has rejected that characterization, saying the buybacks are designed to support market liquidity and manage the government’s maturity profile rather than control a Treasury market valued at more than $30 trillion.

Bessent also pointed to Saudi Arabia’s exit from mBridge, a China-backed cross-border digital currency initiative, as another sign supporting the dollar’s global strength, citing a Financial Times report. Saudi officials, however, said their participation ended after the country completed a planned proof of concept in May 2025. The platform remains active and continues to expand in other areas, making Saudi Arabia’s departure more of a symbolic development for Washington than evidence of a broader breakdown of the project.