The US Department of the Treasury also highlights the growing role of stablecoins in the digital financial market.
In a recently published report, the United States Department of the Treasury officially recognized Bitcoin as “digital gold,” affirming its primary role as a store of value in the emerging economy.
The document highlights how Bitcoin’s market capitalization has experienced exponential growth, rising from $6.4 billion in 2015 to approximately $1.9 trillion in 2024.
The report states:
“Primary use case for Bitcoin seems to be a store of value aka “digital gold” in a decentralized finance (DeFi) world.”
This statement aligns with recent remarks from Federal Reserve Chairman Jerome Powell, who, in an interview with journalist Andrew Sorkin, stated:
“It’s just like gold, only it’s virtual, it’s digital. It’s not a competitor for the dollar, it’s really a competitor for gold.”
The document also emphasizes the role of stablecoins, which account for over 80% of transactions in the digital asset market. Major stablecoin issuers, such as Tether, primarily use US Treasury securities as collateral, with investments totaling approximately $120 billion.
