According to BlockBeats news, Citibank released a report on December 12, stating that stablecoins have the potential to strengthen the dominance of the US dollar and challenge the belief that Bitcoin will eventually end the US dollar’s hegemony. The report suggests that initially, cryptocurrencies like Bitcoin were seen as competitors to central bank-issued currencies, with some even believing that Bitcoin could end the US dollar’s dominance.
However, stablecoins, such as USDT, are challenging this notion. Citi points out that most stablecoins are pegged to the US dollar, with issuers holding both US dollars and US Treasuries. The report also suggests that if the US government further legalizes stablecoins, this could strengthen the US dollar’s dominance.
Increased regulatory transparency may also increase the attractiveness of stablecoins, potentially leading to a higher demand for US Treasury securities from stablecoin issuers. This could result in the US dollar being more easily accepted globally and consolidating its long-term global dominance.
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<p>The post Citibank Study: Stablecoins Threaten Bitcoin, Bolster US Dollar Dominance first appeared on CoinBuzzFeed.</p>
