Miran Predicts Stablecoins Will Transform Dollar Demand Globally
- Miran warns stablecoin growth may alter future U.S. monetary policy and liquidity trends.
- The GENIUS Act introduces strict rules to anchor stablecoins in U.S. Treasury reserves.
- Expanding global stablecoin use could magnify dollar demand and strengthen its influence.
U.S. Federal Reserve Governor Stephan Miran issued a warning about the fast-rising stablecoin sector, saying its explosive growth could have far-reaching effects on U.S. monetary policy. Speaking in New York on Friday, Miran said stablecoins may become a “multitrillion-dollar elephant in the room for central bankers.” He revealed that Federal Reserve staff projections estimate global stablecoin uptake could reach between $1 trillion and $3 trillion by 2030.
Miran compared the projection with the current $7 trillion in Treasury bills outstanding, saying that such an expansion would be too large for policymakers to ignore. He pointed out that if these forecasts prove accurate, the new layer of demand for dollar-denominated assets could directly shape monetary conditions.
He explained that the surge would likely come from global users who lack access to dollar-based savings products but are turning to digital alternatives. This trend, he said, will amplify global appetite for U.S. assets while supporting the dollar’s long-standing dominance.
GENIUS Act Brings Stablecoins Under Federal Oversight
Miran’s remarks follow the recent passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), the first comprehensive U.S. law governing stablecoin issuers. The law mandates that dollar-pegged tokens, such as Tether’s USDT and Circle’s USDC, hold reserves in safe, liquid U.S. assets, such as Treasury bills.
He stated that this framework reduces U.S. bankers’ fears that stablecoins will drain deposits from traditional financial institutions. Since the GENIUS Act does not permit yield payments, Miran said most stablecoin demand would instead come from foreign markets that cannot easily access dollar instruments.
Miran added that even non-compliant stablecoins would likely invest heavily in low-risk U.S. dollar securities to maintain user trust and stability. He said that such behavior will continue to channel billions of dollars toward U.S. financial markets. According to him, this “global demand surge for dollar assets” will make stablecoins a core factor in monetary management decisions in the coming years.
A New Channel for Global Dollar Demand
During his address at the BCVC Summit 2025, Miran described stablecoins as a potential reboot for U.S. financial infrastructure. He argued that the tokens can facilitate faster and more efficient transactions both domestically and abroad, helping users store and transfer dollars digitally.
He outlined an apparent domino effect: every stablecoin is backed by U.S. dollar reserves; as demand for these tokens increases, so does global demand for the dollar itself. This process creates a new channel for international dollar usage that did not exist a decade ago.
According to Miran, as more individuals and businesses worldwide adopt dollar-pegged stablecoins, their collective actions will indirectly strengthen the greenback. The Federal Reserve will need to adapt its policy tools to account for this rapidly reshaping digital demand channel, which is quickly reshaping global liquidity flows. He stated that the scale of this shift is comparable to the Fed’s $3 trillion quantitative easing expansion during the COVID-19 pandemic.
The Governor’s remarks signaled that the Fed is beginning to closely monitor stablecoin growth as a monetary variable rather than a technological trend. The question now emerges: will the rise of stablecoins reshape the future of U.S. economic policy and the dollar’s dominance in global finance?
