Circle welcomes the U.S. Treasury’s efforts to modernize public financial management and supports the integration of payment stablecoins to enhance speed, security, and financial inclusion.
Well-regulated payment stablecoins—such as USDC—offer the inherent potential to upgrade public financial management, and Circle welcomes the U.S. Department of the Treasury’s request for comment seeking feedback on ways to modernize the federal government’s national account. Reimagining public financial management as envisioned in Executive Order 14247 on “Modernizing Payments To and From America’s Bank Account” is a foundational initiative and Circle supports the Treasury Department’s goals of increasing the speed, transparency, and accountability of federal disbursements. Used responsibly, payment stablecoins offer significant advantages over traditional systems, including near-instant settlement, 24/7/365 availability, and auditable transparency through public blockchains.
Driving Efficiency and Reducing Costs
Circle supports the Treasury’s aim of reducing disbursement-related costs and fraud. Traditional payment systems can take days to settle and often require multiple third-party services that can delay payments and reduce visibility into beneficiary uptake. By contrast, payment stablecoins operating on public blockchains enable real-time payments with greater transparency and accountability throughout the value chain. In our experience, stablecoin-based aid programs have reduced average transaction costs from 3% to as low as 0.3%–1.1%. In emergency scenarios, this can be critical and Circle-supported humanitarian programs to financially remote areas have cut transfer times from seven days to less than 24 hours, helping funds reach intended recipients more rapidly and securely.
Boosting Financial Inclusion Through Innovation
An estimated 5.9 million American households remain unbanked or underbanked, and government payments that depend on traditional financial rails struggle to reach these populations. In contrast, payment stablecoins are “always on” and can be accessed with just a phone, including via low-tech transfer methods piloted by Circle and humanitarian aid partners. Public blockchains also enable “programmable” disbursements, allowing for payments that are purpose-bound, auditable, and designed for specific policy objectives—offering a new level of control and transparency for federal agencies.
A Path Forward: Integrating Innovation with Oversight
We also encourage federal agencies to consider payment stablecoins as a means of embedding safeguards like identity management and credentialing, KYC/AML compliance, and transaction monitoring into the design of next-generation payment platforms. We believe this technology can not only enhance public sector efficiency, but also better align government payments across the range of agency and mission needs.
Continued Engagement
Circle appreciates the opportunity to contribute to this important discussion and commends the Treasury’s forward-thinking approach. As Congress advances legislation that would establish a federal framework for payment stablecoins under the GENIUS Act, we stand ready to support the Treasury Department and other federal agencies in building a more secure, inclusive, and resilient public financial system.
To read our full submission, click here.
