FED Member: Stablecoins Could Impact the Global Economy

Federal Reserve (Fed) member Stephan Miran stated that the rapid growth of stablecoins among international users could have significant implications for global monetary policy. In his remarks at the BCVC Summit 2025 event in New York, he emphasized that stablecoins could represent a trillion-dollar threat for central bankers.

Miran expressed that, based on the forecasts of Fed employees, the use of stablecoins could reach levels between 1 to 3 trillion dollars within ten years. Reminding that there are currently about 7 trillion dollars worth of Treasury bonds, Miran stated that if the demand for stablecoins grows that much, it would have a profound impact on U.S. money markets.

He disagreed with some banks' concerns that stablecoins would reduce deposits, stating that the recently enacted GENIUS Act does not allow stablecoin issuers to offer interest income. Therefore, he predicts that the demand for stablecoins will mainly come from countries that do not have access to dollar-denominated savings instruments.

According to Miran, if the demand for stablecoins is driven by a flow from foreign currencies to the dollar, this situation could further strengthen the dollar globally. He mentioned that this development could lead to changes in monetary policy in light of its effects on the Fed’s price stability and employment objectives.

Stablecoins are provided by companies such as Tether (USDT) and Circle (USDC), which are pegged to the dollar in the crypto market. These assets will be subject to regulations under the GENIUS Act, the first major crypto law enacted in the U.S. Miran stated that the U.S. financial infrastructure needs to be “rebooted” and that stablecoins could play a significant role in this transformation.