The US Treasury continues to increase its reliance on stablecoins, but this is only a temporary solution. According to CryptoSlate, GENIUS reserves only cover 93 days, while the Treasury expands liquidity buybacks for bonds with maturities from 10 to 30 years. Sounds like macroeconomics, but for USDT holders and crypto card users, this has practical implications.
Why stablecoins don't solve the problem
The Treasury uses stablecoins to finance short-term debt, but this does not cover the $28 trillion long-term bond need. Essentially, stablecoins provide only temporary liquidity, not a structural fix. For us, this means the stablecoin market, including USDT, remains exposed to macroeconomic risks.
What this means for USDT users
When the US Treasury faces pressure, it reflects on liquidity and volatility. For those using USDT to pay for international services or store value, it's important to understand:
- Networks: TRC-20 remains the cheapest and fastest way to transfer USDT, especially for small amounts. ERC-20 can be more expensive and slower due to gas fees.
- Fees: TRON transfers typically cost less than $1, while Ethereum can cost $10–20 depending on network congestion.
- Speed: TRC-20 confirms transactions in seconds, ERC-20 in minutes.
Practical advice
If you actively use stablecoins for everyday payments, choose the TRC-20 network — it will save time and money. But remember, even USDT is not immune to market fluctuations caused by such macroeconomic factors.
Conclusion
Stablecoins are a convenient tool for crypto payments, but they are not a panacea for the global financial system. Keep an eye on the news and choose networks wisely.
A virtual card in 2 minutes
Pay for subscriptions, AI tools, travel, and international stores. Top up via USDT-TRC20 with no acquiring fees.
