On March 25th, local time, World Liberty Financial (“WLFI”) said in a statement that it would launch a stable currency named USD1, which is linked to the US dollar.
According to public information, the company is supported by the current US President Trump. Previously, the company had raised more than $500 million by issuing digital tokens.
According to the statement issued by the company, USD1 will be 100% backed by short-term US government bonds, US dollar deposits and other cash equivalents. Initially, USD1 tokens will be cast on Ethereum (ETH) and Coin Security Intelligent Chain (BSC) blockchains, and it is planned to expand to other protocols in the future. Each token is designed to keep the value of $1, that is, to trade with $ 1:1.
“USD1 provides something that algorithms and anonymous encryption projects can’t provide-gaining the strength of DeFi based on the reputation and protection measures in traditional finance.” Zach Witkoff, co-founder of WLFI, said, “We provide a digital dollar stable currency that sovereign investors and major institutions can safely integrate into their strategies to achieve seamless and secure cross-border transactions.”
Regarding cryptocurrency, Trump has made many statements. On the night of March 23, Trump suddenly issued a document saying, “I love Trump coins, so cool! The best of them! ” This statement immediately triggered a strong market response, and the value of Trump coins soared by about 10% in a short period of time.
Previously, on March 20, local time, Trump delivered a speech at the cryptocurrency conference, promising to make the United States a “bitcoin superpower.” He said that the United States has taken the lead in the fields of cryptocurrency and next-generation financial technology. The United States is ending the last government’s regulatory war on cryptocurrency and bitcoin.
Trump also called on Congress to pass landmark legislation to formulate simple and common-sense rules for stabilizing the currency and market structure.
According to Xinhua Finance, as the US government will announce more trade policies next week, the uncertainty about the prospect of the Fed’s interest rate cut will intensify. Next week, Federal Reserve Chairman Powell and Vice Chairman Jefferson will deliver speeches. Under the background of rising stagflation expectations, how Powell will stabilize the market and whether he will further convey the attitude of “temporary inflation theory” will become the focus of market attention.
A number of officials of the Federal Reserve said in a recent speech that there is great uncertainty about how to distinguish the direct, indirect and secondary effects of tariffs on prices in real time. “This complex price transmission mechanism is becoming another difficult problem for the Fed to judge the inflation path.”
After the latest round of data was released, the Atlanta Fed’s GDPNow model further reduced the annualized quarter-on-quarter growth rate of US GDP in the first quarter to a contraction of 2.8% on March 28th.
At present, the observation tool of the Federal Reserve of CME shows that the probability that the market expects the Fed to cut interest rates by 25 basis points in May rises to 18.5%, and the probability of cutting interest rates by 25 basis points in June is 64.9%. The expectation of betting on the Fed to cut interest rates three times during the year further rises, indicating that the market is increasingly worried about the downside risks of the economy.
