Will cryptocurrencies replace the dollar? Bessent says no and explains why

• The official believes that technology will replace military force as the backing for the dollar.
• In the absence of the Clarity Act, Bessent will push for oversight of the sector alongside the SEC and CFTC.

U.S. Treasury Secretary Scott Bessent participated yesterday, October 27, 2026, in Ripple's Swell conference alongside the company's CEO, Brad Garlinghouse. During the event, the official discussed the strategic role of cryptocurrencies in the global economy.

In contrast to the traditional view that cryptocurrencies aim to displace fiat currencies issued by central banks or weaken the monetary hegemony of the United States, the current U.S. government presents an opposing perspective. From the Trump administration's viewpoint, the global adoption of these financial technologies strengthens the international presence of the dollar.

Bessent analyzed the historical evolution of the backing factors for dominant currencies. "We will maintain our military protection, but I believe it is increasingly becoming a technological protection," he stated.

The official placed financial infrastructure in the context of the rivalry between the United States and China, where countries choose which artificial intelligence (AI) and semiconductor ecosystems to adopt. "I believe it will be no different with cryptocurrencies; we will win in the digital asset space, and that will continue to strengthen the dollar," according to CoinDesk.

Bessent's words provided a foundation for the Trump administration's policy aimed at attracting companies in the sector. The official stance posits that digital asset technologies function as part of the infrastructure that supports U.S. economic influence.

Additionally, the secretary argued that stablecoins facilitate access to the U.S. dollar in emerging economies exposed to devaluation or inflation. He noted that over 90% of these stablecoins are backed by dollars, and their issuers acquire U.S. government debt securities as collateral.

When a person buys a stablecoin, the issuing companies immediately invest those funds in highly liquid fixed-income instruments, primarily short-term U.S. Treasury bills. A relevant example is Tether Limited, the issuer of the USDT stablecoin, which has become the 19th largest holder of U.S. Treasury bonds globally, surpassing countries like Germany and the United Arab Emirates.

In this way, the Treasury Department positions these companies among the structural sources of public spending financing, alongside commercial banks, institutional funds, and the Federal Reserve itself.

"I believe it will be an important source of financing for the Treasury," Bessent indicated, rejecting the hypothesis that these instruments would displace existing deposits. "I believe we are opening new markets around the world," he added.

On the regulatory front, the White House initiative to regulate cryptocurrency markets faced a setback after Congress failed to approve the discussion of the Clarity Act, as reported by CriptoNoticias. This proposal aimed to establish a federal framework for the industry, and Bessent described the outcome as disappointing.

However, Bessent noted that the Treasury Department could work with regulatory agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The goal of this institutional collaboration is to improve sector oversight through coordinated actions among the agencies.