A recent report from digital asset bank Sygnum highlights that dollar-pegged stablecoins are becoming key in combating the gradual decline of the dollar as the world's reserve currency.
Significance of Stablecoins for the US Economy
The Sygnum report emphasizes that the US government views stablecoins as a vital tool to address real economic issues, especially among citizens in inflation-hit countries.
Regulation and Domestic Market Support
A key part of these efforts is the GENIUS Act, which has already cleared the Senate and is awaiting a House vote. High-ranking officials, including Treasury Secretary Scott Bessent, are actively working to grow the domestic stablecoin market.
Global Challenges and Competition
While the US aims to strengthen the use of stablecoins, Italy has raised concerns about the risks they may pose. Meanwhile, a dirham-pegged digital currency is under development in the UAE, and the BRICS alliance promotes a decentralized global system.
Growing interest in digital dollar assets may sustain dollar dominance, yet the US faces international challenges and competition in the stablecoin market.
