Former Treasury Secretary Summers skeptical stablecoins will boost demand for US debt

Speaking at the recent Asia New Vision Forum 2025 in Singapore, former U.S. Treasury Secretary and Harvard University professor Larry Summers said he is skeptical that the adoption of stablecoins would significantly increase market demand for U.S. Treasury bonds. He added that he disagrees with the opinion that large capital inflows from stablecoin reserves allocated to U.S. Treasurys would substantially reduce the nation's fiscal deficit burden. Summers also stated that anonymous transactions should not be permitted as part of stablecoin regulation and that measures must be in place to prevent the risk of bank runs. He emphasized that stablecoins exist for convenient payments and transactions, not to make it easier for the government to pay off its debt.