Stablecoins Could Solidify the U.S. Dollar's Influence 💵

Key Takeaways

• The dominance of the U.S. dollar has shrunk over time, with the currency making up 58% of foreign exchange reserves.
• However, 99% of stablecoins are pegged to the U.S. dollar, underscoring its pivotal role in crypto-based finance.
• Stablecoin issuers need to back up their coins by buying Treasuries or other liquid assets, driving demand for the U.S. dollar.