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

Federal Reserve Governor Stephen Miran has emphasized that the increasing popularity of stablecoins may necessitate adjustments in U.S. monetary policy. He mentioned that Fed staff estimates indicate a potential growth of stablecoins to between $1 trillion and $3 trillion by the end of the decade. The demand for dollar-tied assets, particularly Treasury bills, could exert significant pressure on monetary policy. Miran downplayed concerns about stablecoins draining U.S. bank deposits, arguing that new regulations under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) would not allow for yield, and most demand will likely stem from regions lacking access to U.S. dollar savings instruments. He stated that a surge in stablecoins driven by movements from foreign currencies to the U.S. dollar could strengthen the dollar, potentially prompting reactions from the Fed regarding price stability and employment mandates.

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