Yeliz Akmaca 
Federal Reserve (Fed) Chair Stephen Miran stated that demand for stablecoin could have a significant impact on the economy in the coming years. Speaking at the BCVC summit in New York, Miran noted that dollar-backed stablecoins could create downward pressure on interest rates.
Miran explained that the growth of stablecoins might influence the Fed’s neutral interest rate. A decrease in the neutral rate could prompt the central bank to lower its policy rates in response. According to CoinGecko, the current total market capitalization of all stablecoins is $310.7 million. Miran added that Fed research indicates this figure could grow to $3 trillion within the next five years.
Impact of Stablecoin Demand on the Economy
According to Miran, stablecoins may increase demand for U.S. Treasury bonds and other liquid dollar assets from investors outside the United States. “I expect stablecoin demand to continue rising, which could have a trillion-dollar effect on monetary policy,” he said.
International organizations, including the International Monetary Fund (IMF), have warned that stablecoins could pose risks to traditional financial instruments and services. U.S. banking groups have also expressed concerns, stating that stablecoins may attract potential banking customers and urging Congress to strengthen regulations.
GENIUS Act and Regulatory Framework
Miran highlighted that the GENIUS Act provides clear guidelines for stablecoin regulation and ensures consumer protection. The law requires stablecoin issuers to hold reserves backed by safe and liquid U.S. dollars at a one-to-one ratio.
“Although I usually approach new regulations with caution, the GENIUS Act gives me significant confidence. This framework provides legitimacy and accountability compatible with traditional dollar holdings,” he said.
Importance of Stablecoins for Investors and the Market
Stablecoins provide liquidity and security for investors while indirectly affecting interest rate policies. Miran emphasized that the growth of stablecoins may increase global investor demand for dollar assets, creating important economic implications.
Bullet List: Stablecoin Effects on the Fed and Market
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Can lower the neutral interest rate, influencing Fed policy rates
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Increases demand for U.S. Treasury bonds and dollar assets
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May create competition for traditional banking and financial services
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Provides legitimacy and accountability through regulatory compliance
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