According to ChainCatcher news, Citibank's latest report believes that stablecoins not only have the potential to reinforce the dollar's dominance but also challenge the assertion that Bitcoin will one day end the dollar's hegemony.
Analysts in the report stated: "Initially, cryptocurrencies like Bitcoin were seen as competitors to central bank-issued currencies. In fact, some believe—and still believe—that Bitcoin could end the dollar's hegemony. However, USDT is challenging this assertion."
Citibank pointed out that the vast majority of stablecoins are pegged to the dollar, with issuers simultaneously holding dollars and U.S. Treasury bonds. Analysts also stated that if the U.S. government further legitimizes stablecoins, this could enhance the dollar's dominance. "Increased regulatory transparency may also further enhance the appeal of stablecoins. If so, the demand from stablecoin issuers for U.S. Treasury bills could grow from the current level of around 1%. Therefore, this cryptocurrency will not replace the dollar, but rather make the dollar easier to accept globally and reinforce the dollar's long-standing global dominance."