U.S. Federal Reserve Board of Governors member Stephen Miran said that the rapid expansion of the stablecoin market could reshape global demand for dollar-denominated assets and influence future U.S. monetary policy. According to Fed analysts, dollar-backed tokens could reach $3 trillion by the end of the decade, surpassing several segments of the U.S. debt market. Speaking at the BCVC 2025 Summit in New York, Miran explained that stablecoins are becoming an essential tool for global dollar circulation — particularly in countries with limited access to traditional financial systems. He noted that growing demand for these digital dollars is strengthening the U.S. currency’s international role, though it also makes the Fed’s liquidity management more complex. “If a global stablecoin glut is driven by flows out of foreign currencies and into the U.S. dollar, it will, all else equal, make the dollar stronger,” Miran said. Policy and Market Impact Miran said the Fed will consider this factor in its future decisions on interest rates and liquidity. He added that U.S. banks’ concerns about potential deposit outflows into stablecoins appear overstated, since most demand comes from outside the United States. He also pointed out that the new law regulating the GENIUS sector does not include the payment of interest on stablecoin holdings—making them less competitive than traditional bank deposits. Still, Miran believes stablecoins could help “reboot” U.S. financial infrastructure, enhancing how funds are stored and transferred while improving transaction speed and transparency. Stephen Miran was appointed to the Federal Reserve Board by President Donald Trump in 2025. He previously served as an economic adviser in the Trump administration and worked in the private sector. As reported earlier, on October 30, 2025, the Federal Reserve cut the benchmark interest rate by 0.25 percentage points.
