Stablecoins can play a significant role in maintaining the status of the US dollar as the dominant global reserve currency, as outlined in an article published by former OCC Chief, Brian Brooks, and former Chief Economist of the OCC, Charles Calomiris. The authors present these stable cryptocurrencies as potential tools to counter the process of global de-dollarization, acting as catalysts for demand for dollars in developing countries, even in the absence of official endorsement of dollars by their governments.
Examples of Argentina and Venezuela illustrate this point. In these countries, high inflation leads citizens to seek to reduce their reliance on the dollar, but simultaneously, they use it as a means of protecting their income and savings from devaluation.
Faced with uncertainty about storing funds in local currency in local bank accounts, an increasing number of citizens in inflation-affected countries are turning to dollar-backed stablecoins as an alternative form of saving.
Furthermore, the authors also address the issue of the decline in the use of the US dollar as a reserve currency. In their view, "losing the dollar's status as a reserve currency would have a negative impact on the United States. Maintaining this status helps to keep borrowing costs low domestically, which is particularly crucial in the face of record levels of debt and government spending that continue to rise." #stablecoin