The impact of US dollar stablecoins on the global economy
Harnessing the potential of USD-based stablecoins
On June 18, exclusive sources revealed important predictions from Zhou Xiaochuan, former Governor of the People's Bank of China, at the Lujiazui Forum 2025. He emphasized the increasingly prominent role of USD-based stablecoins, which could have a significant impact on the global economy. These stablecoins help promote the process of dollarization, particularly in underdeveloped economic areas or those facing high inflation. The flexibility of USD stablecoins can highlight the position of the greenback, opening up attractive opportunities in the potential field of digital financial transformation.
Challenges and limitations of local stablecoins
Although countries have made efforts to issue domestic stablecoins, their global role still faces many challenges. These coins have not been able to expand their influence like the USD Stablecoin, which has established its position in the international market. Policymakers need to carefully consider to ensure that domestic stablecoins do not undermine the position of the USD in the global financial system. This requires strategic coordination and advanced technology to create appropriate solutions, avoiding destabilization of the global cryptocurrency market.
The role of dollarization in the economy
The benefits and risks associated with dollarization
Zhou Xiaochuan emphasized that the impact of dollarization on the economy remains a topic of much debate. In special situations such as high inflation or excessive public debt, dollarization can help stabilize capital mobilization and reduce exchange rate risks. However, on the other hand, it can create negative consequences such as loss of control over monetary policy, weakening the central bank's power in managing the economy.
Assessing the impact of USD stablecoins on economic policy
When discussing the future of stablecoins, careful consideration of the impact of dollarization in each country is necessary. Analysts warn that over-reliance on USD stablecoins may reduce the autonomy of small countries in conducting monetary policy. These factors require governments and financial institutions to have appropriate strategies to harness the benefits of U.S. stablecoins while minimizing risks to national economic policy independence.
Source: https://tintucbitcoin.com/zhou-xiaochuan-ky-vong-stablecoin-thuc-day-dollar-hoa/
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