During the conference held on February 15, Christopher Waller emphasized that 99% of the capitalization of stablecoins is pegged to the US dollar. Even the two largest stablecoins USDT and USDC account for 90% of the stablecoin market capitalization.
“People often say that cryptocurrencies such as Bitcoin can replace the US dollar as the world's reserve currency. However, most transactions in the cryptocurrency market, especially in the DeFi sector, use stablecoins, and are almost always pegged to the dollar. Crypto assets are de facto traded in US dollars. Thus, it is likely that any increase in trading volumes in the DeFi space strengthens the position of our currency,” Waller said.
However, he acknowledged that the rapid growth of cryptocurrencies could reduce dependence on the US dollar, which could be a potential challenge to the currency's status. But so far, according to him, there are no signs of weakening the dominance of the US dollar.
“I don’t think the US dollar will lose its status as the world’s reserve currency in the foreseeable future. Recent events, which some warned would threaten that status, have in fact only strengthened it,” Waller concluded.
Let us recall that in the United States the development of a bill to regulate stablecoins continues and, quite possibly, it will be adopted this year.
Source: Bits
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