“Wow, are you serious? Can you believe his words?"
Christopher Waller, Governor of the Federal Reserve (Fed) recently argued that the dependence of stablecoins on the dollar could actually strengthen the fiat currency of the United States (US) if decentralized finance (DeFi) continues to increase.
It is undeniable that many people often believe that cryptocurrencies such as Bitcoin (BTC) will replace the US dollar as the world's currency, but most DeFi trading uses stablecoins and 99% of the token's market value is tied to the value of the dollar.
Waller, who was appointed to the board in 2022 by then-President Donald Trump, also acknowledged a future where people switching from dollars to digital currencies could put monetary policy at risk.
However, he emphasized that the repeated rhetoric about the decline of the dollar due to global currency collapse is simply false.
The stablecoin sector is dominated by Tether (USDT) and Circle (USDC) which at the center of crypto trading have acted as steady assets used to trade in and out rather than volatile tokens.
Apart from that, there are also those who predict that these utilitarian digital assets* will surge suddenly in the coming years, potentially reaching a trillion dollars.
*The information elements in the blockchain can represent any asset
According to many crypto enthusiasts, the strength of the dollar is important for the US economy and its foreign policy interests even though government-based financial control is good for weakening.
