According to BlockBeats news, on December 12, Citibank's latest report argues that stablecoins not only have the potential to reinforce the dollar's dominance but also challenge the claim that Bitcoin will one day end the dollar's hegemony.
The analyst stated in the report: "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 dominance of the dollar. However, USDT is challenging this claim."
Citibank pointed out that the vast majority of stablecoins are pegged to the dollar, with issuers simultaneously holding dollars and U.S. Treasury bonds. The analyst also stated that if the U.S. government further legitimizes stablecoins, this could enhance the dollar's dominance. "Increased regulatory transparency could also further increase the appeal of stablecoins. If so, the demand of stablecoin issuers for U.S. Treasury bonds may grow from the current level of about 1%. Therefore, this cryptocurrency will not replace the dollar, but can make the dollar more easily accepted worldwide and reinforce the dollar's long-standing global dominance."
