US stablecoins: Donald Trump signs new law for digital currencies

Washington. US President Donald Trump continues to fulfill his campaign promise to promote digital currencies in the US. He signed a law that creates the legal basis for transactions with so-called stablecoins, digital units that are linked to traditional currencies, for example.

The "Genius" Act, signed into law by Trump, regulates the business of dollar-pegged stablecoins. Companies issuing them must hold corresponding dollar amounts as collateral in short-term U.S. Treasury bonds or similar financial products. This measure will cement the U.S. dollar's status as "the world's reserve currency," Trump said.

The dollar had slipped against the euro in recent months, among other factors, after Trump's import tariff announcements prompted some investors to withdraw from US securities. The bill had previously been passed by Congress with a clear majority. Trump had to intervene in recent days to dissuade some members of his Republican Party from opposing the plan.

Thanks to their ties to national currencies, stablecoins are more stable than pure digital currencies like Bitcoin. This makes them easier to agree on for regular transactions.

For years, the US government pursued a restrictive stance toward digital currencies, warning of harm to investors and a destabilization of the financial system. Trump, however, is more open to them and has promised corresponding regulatory changes. In March, he fulfilled another campaign promise and ordered the creation of a US reserve fund for digital currencies. In a controversial move, he himself issued a kind of digital commemorative coin, the sales of which generate income for his family.

RND/dpa