Stablecoin Demand Could Lower Interest Rates, Claims Fed Official

US Federal Reserve Governor Stephen Miran suggests that the growing demand for dollar-pegged crypto stablecoins could influence interest rates downward. According to Miran, these tokens may act as a pressure point on the neutral rate, or r-star, impacting the economy without stimulating or hindering it. If this neutral rate drops, the central bank is expected to adjust its own interest rate accordingly.