According to a recent interview with Bloomberg, David Sacks, the White House cryptocurrency czar, said that stablecoins will increase the demand for the US dollar. Stablecoins have seen an incredible rise in popularity over the last few years. Sacks cites Citi’s estimates that the market for this type of asset could grow to $3.7 trillion by 2030.
Stablecoin Cryptocurrencies Set To Dominate?
Stablecoins have become an integral part of the crypto industry. The GENIUS Act reached a milestone approval in the US Senate on Thursday. The Act cleared the Senate floor with a 68-30 vote. The Act will now move to the House for the next step. President Trump said he wants to approve the legislation before Congress’s August recess. The legislation demands a $1 reserve for every $1 of coins. Issuers will also need to comply with anti-money-laundering rules.
According to Delphi Digital, Stablecoin supply has passed the $250 billion mark for the first time in its history. The report highlights that yield-bearing stablecoins are growing at a rapid rate. Tether and Circle continue to dominate the market. Both issuers account for nearly 86% of the market.
Also Read: Circle Stock (CRLC) Surges Following Stablecoin Bill Passage
The advent of dollar-pegged cryptocurrencies could bring new hope for the fading love of the US dollar. According to Bank of America (BoA) strategist Ralph Axel, stablecoins could further propel the US dollar’s position in global finances. Axel stated, “new tech such as stablecoins…can speed up dollarization of the globe.“
The US dollar has seen a decline over the last decade. Many nations are moving to local currencies for mutual trade. The coming of stablecoins could change this narrative. We could see nations pivot to stablecoins for trade and to keep foreign reserves. With a global move towards Web3, a shift to dollar-pegged cryptocurrencies may not be such an outlandish idea.
