**Calls Grow for Trump’s $2,000 Stimulus to Be Issued in Stablecoins**
U.S. President Donald Trump has been advised to issue his proposed $2,000 stimulus payments in stablecoins instead of traditional cash. A leading crypto firm suggests that this move could ignite a bull run across digital assets.
Recently, Trump announced that his administration intends to distribute a minimum of $2,000 per adult, funded by tariffs on foreign imports. The president referred to this initiative as “a kind of dividend” for American taxpayers, specifying that high-income earners would be excluded from the payments.
Crypto firm BowTiedBull stated that the “smartest thing Trump could do” would be to distribute the $2,000 stimulus via stablecoin payments. According to them, this approach could send the digital asset industry “into the stratosphere.”
In recent years, stablecoins have proliferated due to their ability to move money across borders instantly and at low cost, making them a vital pillar of the crypto market.
Trump emphasized that the stimulus funds would come from “trillions of dollars” generated by tariffs and record investments flowing into U.S. manufacturing. “A dividend of at least $2,000 a person will be paid to everyone,” he said.
This announcement followed Democratic victories in recent local and state elections.
During the pandemic, the Trump administration approved two rounds of stimulus checks amounting to over $814 billion in relief. According to IRS data, approximately 476 million payments were made to individuals earning up to $75,000 and couples earning up to $150,000. These measures significantly helped stabilize the economy during a downturn.
Interestingly, the initial stimulus distribution coincided with Bitcoin’s surge from $10,000 to over $30,000 by the end of 2020. Experts argue that issuing the new payments as stablecoins could replicate this effect, potentially attracting substantial capital inflows into crypto markets.
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### Bank of England Signals Softer Stance on Stablecoins
In a related development, the Bank of England (BoE) has proposed new guidelines permitting stablecoin issuers to invest up to 60% of their reserves in short-term government debt. This marks a softer stance compared to the BoE’s earlier call for issuers to hold 100% of their assets with the central bank.
The move reflects the BoE’s continued efforts to stabilize the UK economy, including lowering interest rates to encourage growth.
Sarah Breeden, Deputy Governor for Financial Stability, described the new framework as a “pivotal step.” She said, “Today’s proposals mark a pivotal step towards implementing the UK’s stablecoin regime next year. We’ve listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England.”
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The evolving landscape of stimulus payments and regulatory frameworks signals growing acceptance and integration of stablecoins in mainstream finance, potentially reshaping how governments and markets interact with digital currencies in the near future.
https://bitcoinethereumnews.com/tech/trump-urged-to-offer-2000-stimulus-in-stablecoins-firm-says-it-could-ignite-bull-run/
