BOE official says stablecoins may strengthen dollar dominance, boost Treasury demand

Carolyn Wilkins, a member of the Bank of England’s Monetary Policy Committee, said stablecoins could reinforce U.S. dollar dominance and increase demand for U.S. Treasuries, Cointelegraph reported. In a recent university speech, Wilkins said dollar-denominated stablecoins could facilitate global payments and expand access to dollar-denominated assets outside the United States. Wilkins also warned of risks, saying large-scale stablecoin redemptions could force issuers to sell sizable holdings of U.S. Treasuries to raise cash for customer payouts, which could destabilize markets and amplify financial-market volatility. Wilkins added the development of the stablecoin market carries important implications not only for the crypto industry but also for the international monetary system and financial markets.