Overview
- Fed Governor Stephen Miran projects dollar‑denominated stablecoin demand could reach $1 trillion to $3 trillion by 2030.
- Miran says stablecoin growth would raise the supply of loanable funds and lower the neutral rate (R‑star), implying policy rates should be lower than otherwise.
- He notes that U.S. rules requiring stablecoin reserves to be held in safe dollar assets increase Treasury buying and reduce government borrowing costs.
- Miran warns that flows from bank deposits into stablecoins could strain lending capacity and tighten credit conditions.
- He adds that wider global use of dollar‑backed stablecoins may strengthen dollar dominance and weaken the effectiveness of other central banks’ tools.