U.S. Fed's Miran Says Policy Needs to Adjust to Stablecoin Boom That Could Reach $3T

Federal Reserve Governor Stephen Miran highlighted the significant impact of stablecoins on U.S. monetary policy as their demand grows. Miran, recently appointed by President Trump, stated that Fed projections estimate the uptake of stablecoins could reach between $1 trillion and $3 trillion by the end of the decade. He emphasized that this surge in demand for dollar-tied assets, such as Treasury bills, would necessitate adjustments in monetary policy. Miran believes that stablecoins will primarily attract users from regions lacking access to dollar-denominated savings, thus bolstering demand for U.S. dollar assets and potentially strengthening the dollar itself. The recently established GENIUS Act will regulate stablecoin issuers, such as Tether and Circle, promoting their growth within the financial infrastructure. Miran also suggested that stablecoins might facilitate improved domestic and international payments and dollar holdings.

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