<\/p>\n
Stablecoins could serve as a boon for US dollar adoption, according to the Atlantic Council, a nonpartisan think tank.<\/p>\n
Barbara C. Matthews and Hung Tran, senior fellows at the Council\u2019s Geoeconomics Center, note in a new analysis<\/a> that the $227 billion stablecoin market is \u201ctiny\u201d compared to the $6.22 trillion US capital markets and the $3.39 trillion overall crypto market capitalization.<\/p>\n \u201cIf current double-digit growth rates for stablecoins continue, they could constitute a considerable proportion of overall crypto market capitalization, if not capital markets themselves. More importantly, the vast majority of stablecoins are pegged to the US dollar.<\/em><\/p>\n Rapid adoption rates paired with speedy transaction volumes and velocity in stablecoin markets mean that today\u2019s stablecoin and CBDC decisions may amplify ongoing shifts in reserve currency markets. Dramatic shifts in reserve currency status historically have been rare events. The more likely scenario for threats to dollar dominance involves a range of alternative currencies nibbling at the dollar\u2019s role at the margins.\u201d<\/em><\/p>\n The Atlantic Council analysts note that the dollar\u2019s share of global FX reserves has fallen from 71% in 2001 to 54.8% currently. They say stablecoins could potentially play a role in reversing that trend.<\/p>\n \u201cIn this context, choices made by individual users can materially impact global reserve currency status. The broad adoption of US dollar-backed stablecoins could even reverse the de-dollarization trend. Decisions made by policymakers during 2025 will thus materially impact how the stablecoin and dollar markets evolve.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>  <\/p>\n Generated Image: Midjourney<\/span><\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Stablecoins could serve as a boon for US dollar adoption, according to the Atlantic Council, a nonpartisan think tank. Barbara C. Matthews and Hung Tran, senior fellows at the Council\u2019s Geoeconomics Center, note in a new analysis that the $227 billion stablecoin market is \u201ctiny\u201d compared to the $6.22 trillion US capital markets and the […]<\/p>\n","protected":false},"author":2,"featured_media":370627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-370617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/370617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=370617"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/370617\/revisions"}],"predecessor-version":[{"id":370638,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/370617\/revisions\/370638"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/370627"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=370617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=370617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=370617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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