Stablecoins as a Catalyst for Financial Reboot, Says Fed Governor

Federal Reserve Governor Stephen Miran recently highlighted the potential of stablecoins to catalyze a financial reboot in the U.S. economy, suggesting they could help lower interest rates. Speaking at the BCVC Summit 2025, Miran emphasized that stablecoins, which are digital tokens pegged to fiat currencies like the U.S. dollar, have evolved into a significant aspect of the financial landscape.

He noted that they offer a stable store of value and facilitate quick capital movement across borders, thus enhancing their utility. Miran argued that emerging demand for stablecoins could lead to increased demand for U.S.

Treasury bills and dollar-denominated liquid assets, potentially lowering government borrowing costs. He referenced the GENIUS Act, which establishes a regulatory framework for stablecoins, as a crucial factor in their growth and adoption.

Miran's projections suggest that the stablecoin market could reach between one to three trillion dollars by the end of the decade, significantly impacting monetary policy and the financial sector. Furthermore, he indicated that this development could attract millions of new users to the dollar-based digital asset economy, benefiting both emerging and advanced economies.

Miran concluded that stablecoins could play a transformative role in the financial infrastructure, advocating for further exploration of their implications for monetary policy both domestically and internationally.