Quick Takeaways:
- Eric Trump says stablecoins could actually protect the future of the US dollar.
- Critics say the Trump family’s crypto moves raise ethical red flags.
- Experts are divided; some view stablecoins as a tool for maintaining dollar dominance, while others see risk.
Stablecoins & Trump: The Dollar’s Digital Backup Plan?
Eric Trump has a big idea, and it’s not about real estate or rallies. It’s about crypto. In a recent interview with The New York Post, Eric shared his belief that stablecoins, a type of digital currency tied to real-world assets like the US dollar, might actually “save the US dollar.”
He says the US is falling behind in the global shift toward digital finance, and stablecoins could be the key to keeping America in the lead.
At the center of this vision? The Trump family’s own crypto venture: World Liberty Financial (WLFI), and their dollar-pegged stablecoin, USD1.
For Eric, it’s not just about investing in tech, it’s about what comes next for the global economy. But not everyone’s buying it.
Stablecoins & Trump: A Family Project That’s Stirring Controversy
As soon as the Trump-backed stablecoin was announced, critics raised eyebrows. The idea of a former president’s family launching a dollar-backed crypto project while still deeply involved in politics? That, understandably, has people asking some tough questions.
Several lawmakers say it’s a clear conflict of interest. If someone who once held the presidency, and might return to it, is also pushing a digital currency tied to their own brand, where’s the line between public service and personal gain?
Congresswoman Maxine Waters even suggested that Donald Trump could try to replace the dollar in key federal programs like Social Security or tax payments with his family’s stablecoin.
That kind of scenario feels more sci-fi than financial policy, but it shows just how serious the concerns are.
And those concerns aren’t just political. Back in March, five Democratic senators wrote to the Treasury Department, warning that a sitting or former president profiting from a national currency alternative is a risk the system just isn’t built for.
Things heated up even more in July, when Trump signed the GENIUS Act, a law that sets the ground rules for stablecoin regulation.
Not long after, reports claimed that Trump’s personal fortune had jumped by $2.4 billion, much of it tied to crypto-related ventures.
Stablecoins & Trump: Could Crypto Actually Help the Dollar?
Eric Trump isn’t backing down. In fact, he’s doubling down. He argues that stablecoins like USD1 could make global transactions faster, cheaper, and smoother.
But more importantly, he says they could help the US dollar stay dominant in a world that’s quickly moving toward digital payments and decentralized finance. And he’s not the only one who sees the potential.
Federal Reserve Governor Christopher Waller has voiced similar support. In his view, stablecoins could actually make the dollar even stronger globally, by making it easier to use across borders and digital platforms.
Bryan Pellegrino, the CEO of LayerZero Labs, even described stablecoins as a kind of “Trojan Horse”, a way for the US to sneak its currency into every corner of the world’s financial system without firing a shot.
But Here’s the Other Side of the Story
Of course, there’s another side to all this.
While some experts are optimistic, others think stablecoins could actually backfire.
One of Europe’s biggest asset managers, Amundi, recently warned that if the US leans too hard into stablecoins, especially ones not issued directly by the government, it could undermine trust in the dollar over time.
Their concern? That private stablecoins might eventually compete with the dollar itself, instead of supporting it.
And when those stablecoins are tied to politically powerful families, like the Trumps, it opens up even more questions. Who controls the future of money? And who benefits the most?
