Stablecoin Demand Could Influence US Interest Rates, Says Fed Governor

U.S. Federal Reserve Governor Stephen Miran, appointed by President Donald Trump, addressed the impact of stablecoins on interest rates at the BCVC summit in New York. He highlighted that the growing demand for dollar-pegged cryptocurrencies like stablecoins could exert downward pressure on the neutral rate, or r-star. This neutral rate neither stimulates nor hinders economic activity, and a decrease in this rate would likely lead to the central bank lowering interest rates accordingly.