Citibank: US dollar stablecoins will help consolidate the global dominance of the US dollar and will not replace the US dollar

Odaily reported that in the latest report, Citibank stated that stablecoins not only have the potential to consolidate the dominance of the US dollar, but also challenge the notion that Bitcoin could one day end the US dollar's hegemony. The analysts in the report said: "Initially, cryptocurrencies like Bitcoin were seen as competitors to central bank-issued currencies. In fact, some believe - and still believe - that Bitcoin could end the dominance of the US dollar. However, USDT is challenging this notion." Citibank pointed out that the vast majority of stablecoins are pegged to the US dollar, and the issuers hold both US dollars and US Treasuries. The analysts also said that if the US government further legitimizes stablecoins, this could enhance the dominance of the US dollar. "Increased regulatory transparency could also further increase the appeal of stablecoins. If so, the demand for US Treasuries by stablecoin issuers could grow from around 1% currently. Therefore, this cryptocurrency will not replace the US dollar, but can make the US dollar more widely accepted by the world and consolidate its long-standing global dominance." (TheBlock)