Polygon CEO Says Stablecoins Will Strengthen Dollar’s Global Power
- Sandeep Nailwal says stablecoins are strengthening the U.S. dollar in a new “Dollarisation 2.0.”
- Nailwal argues that stablecoins shift the dollar’s influence from businesses to consumer access.
- He contrasts Dalio’s warning, saying stablecoins embed the dollar deeper into global finance.
Polygon Foundation CEO Sandeep Nailwal has said that the U.S. dollar could gain more power in the short to medium term. His remarks directly challenge Bridgewater Associates founder Ray Dalio, who has warned that the dollar’s global dominance may fade due to rising U.S. debt.
Nailwal shared his views on X, arguing that stablecoins are reshaping how the dollar interacts with global markets. He described the ongoing transformation as “Dollarisation 2.0,” a shift that is already unfolding across developing regions.
Stablecoins Redefine Dollarisation Worldwide
Nailwal said that stablecoins are not only creating constant demand for U.S. debt but also changing the dollar’s relationship with the world. Traditionally, the dollar’s influence operated at the business and government level.
According to Nailwal, stablecoins have now expanded this relationship to a business-to-consumer level. Anyone with an internet connection can now hold and use digital dollars directly through blockchain systems. He said this shift represents a new phase of dollarisation that gives individuals the same access once limited to institutions.
He said the dollar is becoming more powerful because stablecoins make it available to anyone with an internet connection. Nailwal pointed to rapid adoption in Latin America and Africa, where inflation and weak banking infrastructure have driven people toward digital dollars.
Across these regions, stablecoins such as Tether’s USDT and Circle’s USDC have become preferred methods for savings and payments. According to data from DeFiLlama, the total stablecoin market now exceeds $300 billion, with usage rising sharply in emerging markets.
Governments Face New Monetary Pressures
Nailwal also warned that this trend could challenge national monetary sovereignty. He said governments will face growing pressure to permit and promote “open-loop” local stablecoins to remain competitive.
Such systems would allow citizens to transact using digital dollars while preserving local control through regulatory frameworks. The approach, according to Nailwal, could help balance innovation with oversight in rapidly digitizing economies.
Stablecoins are now becoming key to decentralized finance (DeFi) systems and global payment infrastructure. As blockchain adoption expands, stablecoins are linking traditional finance with decentralized ecosystems, offering faster and cheaper cross-border transactions.
Nailwal Counters Ray Dalio’s Dollar Warning
His comments directly contrast with the views of Ray Dalio, who has warned that U.S. fiscal challenges could weaken the dollar’s reserve currency status. fiscal challenges. Dalio maintained that excessive money printing, political division, and mounting debt could undermine trust in the dollar around the world.
Nailwal, however, believes stablecoins are reinforcing the dollar’s reach rather than undermining it. By embedding digital dollars into blockchain systems used worldwide, he said the U.S. currency now operates closer to end users than ever before.
Related: President Trump Says Crypto Will Ease Pressure on the Dollar
This on-chain integration, he argued, gives the dollar a new level of global connectivity that traditional systems cannot match. Both viewpoints highlight how blockchain technology and stablecoins are changing international finance. As “Dollarisation 2.0” unfolds, the dollar remains at the heart of this digital shift. It is now stronger, faster, and more accessible to people around the world.
