Trump will double the money supply with stablcoins and that is good for Bitcoin: Keiser

Although the stablecoins look harmless, Max Keiser, an influential voice in the Bitcoin ecosystem (BTC), warns that they could not be.

According to Keiser, Donald Trump plans an economic offensive that would double the money supply through Stablecoins, not to strengthen the dollar, but to reduce its purchasing power in a master strategy. Surprisingly, this maneuver could benefit the pioneer digital currency, consolidating its position as a value refuge.

The analysis of the Bitcoin advisor of El Salvador reflects a conflict in force in the economic policy of the United States. On the one hand, the Federal Reserve, led by Jerome Powell, maintains A firm posture with interest rates high to control inflation. On the other, Donald Trump advocates a weaker dollar to boost exports and strengthen the competitiveness of the US industry.

The main tool of the Fed to control the economy is interest rates. So, by keeping them high, it makes credit more expensive, it encourages savings and, consequently, slows the expansion of the monetary supply M2 (the aggregate that includes cash, sight deposits, savings accounts and other very liquid assets).

And although at present, interest rates have remained high, there were never so many dollars before, as cryptoics reported.

Stablecoins as an economic weapon

According to Keiser, the current Fed policy enters into direct conflict with the objectives of Donald Trump. This is because a slow growth of the M2 money supply strengthens the dollar, which harms US exports.

And since Trump cannot directly force the Fed to reduce interest rates, I would look for an alternative way to “print” money and devalue the currencyas the analyst explains.

He adds that the Trump government, who approved the Genius law to regulate the stablecoins that follow the dollar (such as USDT or USDC), would boost the use of these cryptoactives to de facto duplicate the M2 money supply.

The mechanism would be simple in its concept because it would be facilitated or encouraged a massive emission of digital dollars that, although they are issued by private companies, are backed 1: 1 for real dollars or equivalent assets.

This injection of billions of “digital dollars” in the global economy would act as a parallel monetary expansion, achieving the same effect as a massive impression of Fed, but without its control.

The direct result, according to Keiser’s words, would be devastating for the common saver. This is because it projects that “its purchasing power in dollars is about to reduce by half.”

Keiser then reveals why this monetary chaos would ultimately, bitcoin. He affirms that the stablecoins emitters themselves are aware of the risk of this plan. In his opinion, they know that A deliberate devaluation of the dollar would erode the value of the asset that supports its own products.

In anticipation of this scenario, Keiser says that these entities “are accumulating bitcoin as fast as they can.” They act as “intelligent money,” anticipating the degradation of the dollar and positioning themselves in the only monetary asset with a finite and predictable offer, immune to political decisions.

A perfect storm in favor of Bitcoin

In short, the perspective that Keiser offers is that of a perfect storm. That is, that of a political leader willing to sacrifice their currency to achieve economic objectives through an industry of the Stablcoins that would allow the plan to be executed by the traditional institutions and a refuge asset, such as Bitcoin that directly benefits from the distrust generated.

Deliberate degradation of the Fiat currency, orchestrated from power, It would act as the final catalyst for the adoption of Bitcoin as the reserve of global value par excellence.

However, Keiser is not the only ecosystem actor who talks about a Trump master plan. Jack Mallers also points out a master plan by Trump to weaken the dollar. His analysis invites us to reflect on the future of the dollar and the true place that corresponds to Bitcoin in a new emerging economic order.

In this context, Keiser’s vision underlines a critical point: the monetary manipulation of the stablecoins could accelerate the transition to a system in which Bitcoin reigns as the most adoption asset for the population. This, while the dollar faces greater erosion. All this, transforming the global financial system.