Summary
- Citibank evaluated that the adoption and growth of stablecoins could help strengthen the dominance of the US dollar.
- Stablecoins account for more than 4/5 of cryptocurrency trading volume and are mostly pegged to the US dollar, playing a crucial role in maintaining the dollar's influence.
- Regulatory clarity could enhance the appeal of stablecoins, contributing to the global accessibility of the USD.
According to The Block, a cryptocurrency-focused media outlet, Citibank stated in a report on the 11th (local time) that "the adoption and growth of stablecoins could help strengthen the dominance of the US dollar."
The report noted, "Cryptocurrencies like Bitcoin (BTC) were initially conceived as competitors to central bank-issued currencies," adding, "Some believe Bitcoin could end the US dollar's hegemony."
It continued, "Stablecoins account for more than 4/5 of cryptocurrency trading volume, with the majority pegged to the US dollar," explaining, "They are also backed by dollar cash reserves and US Treasury bonds. If the US government further legitimizes stablecoins, the dominance of the USD could be enhanced."
Furthermore, it added, "Regulatory clarity could potentially increase the appeal of stablecoins," suggesting that "rather than displacing the dollar, they could help make the dollar more accessible globally."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
