Fed Governor: US Policy Needs to Align with Stablecoin Market Projected to Hit $3T by 2030

Stablecoin Market Growth: US Federal Reserve Governor Stephen Miran predicts the stablecoin market could reach between $1 trillion and $3 trillion by the end of the decade, significantly higher than its current capitalization of approximately $305.514 billion.

Regulatory Clarity from GENIUS Act: The recent signing of the GENIUS Act provides a clear regulatory framework for stablecoin issuers in the US, encouraging their integration into the payment system, although Miran notes that economic research on stablecoins still needs to catch up.

Impact on US Dollar Dominance: Miran asserts that stablecoins are enhancing the global dominance of the US dollar, as many major stablecoins are pegged to the dollar, increasing demand for US Treasury bills and other dollar-denominated assets.

Need for Local Fiat Integration: For stablecoin adoption to flourish, Miran emphasizes the necessity of creating a bridge from local fiat currencies to stablecoins, which will facilitate their broader acceptance and use.