Fed Official Highlights Stablecoins’ Impact on Dollar Demand
A Federal Reserve official has emphasized the growing influence of stablecoins on U.S. dollar demand and liquidity management.
Stablecoins—digital assets pegged to fiat currencies—can affect the velocity of money and cross-border transactions, potentially altering traditional dollar flows. Increased stablecoin adoption may tighten demand for physical dollars in certain markets while encouraging broader use of digital payments. This insight underscores the need for regulatory monitoring to balance innovation with financial stability.
