Geopolitics

Crypto and the Trump Admin could experience friction over stablecoins.

Some in the Admin want to devalue the $ to spur domestic industry. Others don’t because this would diminish reserve-currency status/global influence.

Bringing stablecoins to billions of people would increase $ demand and make devaluing harder

This is close to getting it, but they don't want to devalue the dollar. They want to devalue the dollar *relative to other country's currencies*, as that is significant cause of trade imbalance

If the dollars move on chain, then... The trade imbalance is not with any actual country!

I'll answer your question with another question: what are stablecoins actually good at trading for?

Totally agree with the relative devaluation but if dollar stablecoins become more ubiquitous in trade etc, that could still be seen as a complicating factor in terms of devaluation