Stablecoins Fundamental to US Economy, Says Lutnick

According to Bloomberg, Howard Lutnick, the CEO of Cantor Fitzgerald, has expressed his support for stablecoins, stating that they are fundamental to the United States economy. During a Chainalysis conference in New York, Lutnick voiced his support for properly backed stablecoins such as Tether and Circle, stating that they drive non-systemic risk to the world and increase demand for US Treasuries. Lutnick also voiced his opposition to central bank digital currencies (CBDCs), expressing concerns that they could be perceived negatively by other countries, particularly China. He suggested that China might view a US CBDC as an 'American spy wallet'. In addition to his views on stablecoins and CBDCs, Lutnick also discussed the potential for more real-world assets, such as bonds, to be traded on blockchains through a process known as tokenization. He predicted that, with the development of fast and cheap blockchains, there will be a significant increase in the tokenization of financial assets over the next decade. This view is shared by several financial heavyweights, including BlackRock Inc., Brevan Howard, and KKR, all of which have announced efforts to tokenize certain parts of their funds. Citigroup has estimated that the tokenization market could grow to $5 trillion by 2030.