Howard Lutnick, CEO of Cantor Fitzgerald, the custodian for Tether, asserts the beneficial impact of stablecoins on the United States' economic landscape. Addressing a Chainalysis Conference, Lutnick highlighted stablecoins' contribution to bolstering demand for U.S. Treasury notes, a pivotal factor in sustaining the nation's economic prowess.

Upholding Dollar Hegemony

Lutnick underscores the significance of dollar hegemony, emphasizing its fundamental role in maintaining the economic supremacy of the United States. He advocates for properly backed stablecoins, such as Tether and Circle, as essential instruments that reinforce the dollar's global dominance while benefiting the U.S. economy.

Supporting U.S. Economy

Stablecoins, according to Lutnick, play a fundamental role in driving demand for U.S. Treasury notes, thereby fortifying the economic foundation of the country. Contrary to concerns about systemic risks, Lutnick asserts that stablecoins pose no such threat and contribute positively to the world economy.

Market Influence and Stability

Highlighting Tether's position as the world's largest stablecoin issuer, Lutnick acknowledges the pivotal role stablecoins play in cryptocurrency markets. Their widespread adoption as funding currencies in spot trading and collateral in derivatives markets underscores their significance in maintaining market stability and liquidity.

Resilience and Confidence

Despite challenges faced by the stablecoin ecosystem, including the collapse of Terra's UST, Tether has demonstrated resilience and reliability. Lutnick reaffirms Tether's ability to withstand market stress, bolstering investor confidence through transparent reserves and rigorous stress testing.

Challenges and Opportunities

While advocating for the tokenization of real-world assets like bonds on blockchain platforms, Lutnick expresses skepticism regarding central bank digital currencies (CBDCs). He cautions against potential geopolitical implications, particularly in relation to China's perception of a digital dollar as a tool of espionage.