Stablecoin Adoption Could Influence Fed Interest Rates

Federal Reserve Governor Milan has suggested that the growing popularity of stablecoins might impact interest rate decisions by the Federal Reserve. He expressed concern about their potential to decrease interest rates, potentially even reaching the zero lower bound on interest rates, as a result of increased reliance on stablecoin systems. Additionally, wider adoption of stablecoins could boost the use of US dollars, leading to increased dollar value.