CoinVoice recently learned that in Citibank's latest report, it is believed 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 hegemony of the dollar.
Analysts in the report stated: "Initially, cryptocurrencies like Bitcoin were seen as competitors to fiat currencies issued by central banks. In fact, some believe—and still believe—that Bitcoin could end the hegemony of the US dollar. However, USDT is challenging this assertion."
Citibank pointed out that the vast majority of stablecoins are pegged to the US dollar, with issuers simultaneously holding US dollars and US Treasury bonds. Analysts also stated that if the US government further legitimizes stablecoins, it could strengthen the dollar's dominance. "Increased regulatory transparency could also enhance the attractiveness of stablecoins. If so, the demand from stablecoin issuers for US Treasury bills could grow from the current level of about 1%. Therefore, this cryptocurrency will not replace the dollar, but rather make it easier for the dollar to be accepted worldwide and reinforce the dollar's long-standing global dominance." [Original link]