U.S. Fed's Miran on Adjusting Policy for Stablecoin Boom

Federal Reserve Governor Stephen Miran raised concerns regarding the potential impact of stablecoins on U.S. monetary policy, predicting their demand could reach between $1 trillion and $3 trillion by the decade's end. Miran emphasized that this surge in demand for dollar-tied assets, particularly among foreign users, poses significant implications for monetary policy decisions. He suggested that such demand may strengthen the dollar and influence the Fed’s objectives, including price stability and maximum employment. Unlike fears that stablecoins would drain bank deposits, Miran believes their growth is more likely to attract investment from regions lacking access to dollar-denominated assets. The discussion occurs alongside the introduction of the GENIUS Act, aimed at regulating stablecoins and addressing emergent challenges within the evolving financial landscape.

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