Stablecoins are the one greatest device for the US authorities to take care of the US greenback’s hegemony in world monetary markets, in line with LayerZero Labs CEO and founder Bryan Pellegrino.
In an interview with Cointelegraph, the CEO of LayerZero Labs, which created the LayerZero interoperability protocol just lately chosen by Wyoming to be the distribution partner for the Wyoming stablecoin, stated that the cross-border accessibility of dollar-pegged tokens makes them an apparent option to drive US greenback demand. Pellegrino added:
“Stablecoins for the US greenback are the one greatest device — the final Trojan Horse or vampire assault on each single different foreign money on the planet — whether or not it’s Argentina, whether or not it’s Venezuela, whether or not it’s the entire international locations which have large inflation.”
The CEO stated he expects help for stablecoins on each the federal and state ranges to develop due to the apparent enhance stablecoins give to the US greenback in international change markets and the monetary moat stablecoin-driven demand will create across the US greenback’s world reserve foreign money standing.
Stablecoin market overview. Supply: RWA.XYZ
Associated: Certain stablecoins aren’t securities, SEC says in new guidance
US authorities appears to be like to stablecoins to guard US greenback
Pellegrino cited Tether’s rising position as one of many largest patrons of US Treasury payments on the planet as proof of the demand for US debt devices from stablecoin issuers.
Tether just lately grew to become the seventh-largest holder of US Treasuries, beating out Canada, Germany, Norway, Hong Kong, and Saudi Arabia.
Talking on the White Home Crypto Summit on March 7, US Treasury Secretary Scott Bessent stated the Trump administration would leverage stablecoins to extend US dollar hegemony and indicated this could be a high precedence for officers in 2025.
Based on a 2023 report from Chainalysis, over 50% of all of the digital asset worth transferred to international locations within the Latin American area, together with Argentina, Brazil, Columbia, Mexico, and Venezuela was denominated in stablecoins.
The low transaction charges, relative stability, and near-instant settlement occasions for dollar-pegged stablecoins make these real-world tokenized belongings ideal for remittances and shops of worth for residents in growing international locations affected by excessive inflation and capital controls.
Journal: Bitcoin payments are being undermined by centralized stablecoins
