Fed Governor Stephen Miran: Stablecoins Reinforce The US Dollar’s Global Dominance

Forget the doomsayers—the greenback's digital twin is cementing its rule.

The Unlikely Reinforcer

Move over, interest rate hikes. A new, tech-driven force is quietly propping up the dollar's global supremacy. According to Federal Reserve Governor Stephen Miran, the very asset class once viewed with deep suspicion by regulators—stablecoins—is now reinforcing the U.S. dollar's position as the world's reserve currency. It's a stunning about-face that highlights how digital innovation can amplify traditional financial power structures, not dismantle them.

Digital Demand, Real-World Clout

The mechanism is deceptively simple. The vast majority of leading stablecoins are pegged 1:1 to the U.S. dollar. Every new user onboarding into crypto, every transaction settled in USDT or USDC, creates incremental, global demand for dollar-denominated assets held in reserve. This digital layer acts as a 24/7, borderless distribution network for dollar liquidity, reaching corners of the global economy that traditional banking rails can't—or won't—touch. It's monetary policy with a Silicon Valley sheen.

The Irony Isn't Lost

The narrative is rich with irony. Decentralized finance's most crucial building blocks are becoming the ultimate tool for central bank influence. While crypto purists dream of bypassing the old system, the system is quietly co-opting the infrastructure, turning a potential threat into a powerful ally. It seems the dollar, much like a certain Wall Street bank, has mastered the art of buying the dip on its own competition.

So, while crypto markets chase the next speculative frenzy, the real story is unfolding in the steady, trillion-dollar hum of stablecoin settlements. The future of finance might be digital, but its anchor remains stubbornly, powerfully green. A cynic might note that the ultimate 'stable' investment in crypto has been, and always will be, betting on the U.S. government's printing press.

“I believe that the sweeping deregulation under way in the United States will significantly boost competition, productivity and potential growth, allowing faster economic growth without putting upward pressure on inflation,” Miran said, according to a published text of his remarks. Back in November, Miran raised the view that the widespread adoption of stablecoins will allow the Fed to ease monetary policy. In September, he also argued that lower population growth, falling housing inflation, and a tariff-driven improvement in the budget deficit could all allow the Fed to adopt an easier policy stance.

Stablecoins pegged to the US dollar have seen a stady increase in adoption over the past two years, led by the Tether USDT token. With the backing of the Fed Governor and Genius Act, stablecoins are expecting to continue their meteoric rise in 2026.

In addition to his remarks on stablecoins, Governor Stephen Miran also called for 150 bps interest rate cuts in 2026 to support jobs, saying inflation NEAR 2.3% is close to the target. The Federal Reserve remains divided after 75 bps of cuts.