Changpeng Zhao believes that a home-country stablecoin could boost demand for government bonds.

Changpeng Zhao, founder of Binance, said local-currency stablecoins could boost demand for both the underlying currencies and their governments' bonds. In a post on X on the 2nd, cited by PANews, Zhao said more countries will come to recognize that issuing stablecoins pegged to their own fiat currencies would increase demand for those currencies and domestic government debt. He noted the US dollar already holds a clear advantage, acknowledging the current dominance of dollar-pegged stablecoins while pointing to the potential of local-currency alternatives. Local-currency stablecoins are tokens pegged to the value of national fiat currencies other than the dollar. The comments matter because stablecoin issuers are among the largest buyers of short-term US Treasuries, and a shift toward local-currency issuance could redirect that demand into other sovereign bond markets. Watch for whether policymakers and issuers in major non-dollar economies move to launch or expand local-currency stablecoin frameworks.