The rapid growth of crypto could threaten dollar dominance, but that’s unlikely due to the popularity of U.S. dollar stablecoins, says the Fed’s Christopher Waller.
The popularity of United States dollar-denominated stablecoins in decentralized finance (DeFi) may be helping secure the dollar’s dominance as a global reserve currency, says Federal Reserve governor Christopher Waller.
“About 99% of stablecoin market capitalization is linked to the U.S. dollar,” Waller said at a central banking-focused conference on Feb. 15.
“People often conjecture that cryptocurrencies like Bitcoin may replace the U.S. dollar as the world’s reserve currency,” Waller added. He noted, however, that most DeFi trades use stablecoins largely linked to the dollar.
