Stablecoins are the one finest device for the USA authorities to keep up the US greenback’s hegemony in international monetary markets, based on LayerZero Labs CEO and founder Bryan Pellegrino.
In an interview with Cointelegraph, the CEO of LayerZero Labs, which created the LayerZero interoperability protocol lately chosen by Wyoming to be the distribution partner for the Wyoming stablecoin, mentioned that the cross-border accessibility of dollar-pegged tokens makes them an apparent option to drive US greenback demand. Pellegrino added:
“Stablecoins for the US greenback are the one finest device — the final Trojan Horse or vampire assault on each single different forex on the earth — whether or not it’s Argentina, whether or not it’s Venezuela, whether or not it’s the entire international locations which have huge inflation.”
The CEO mentioned he expects assist for stablecoins on each the federal and state ranges to develop due to the plain increase stablecoins give to the US greenback in international change markets and the monetary moat stablecoin-driven demand will create across the US greenback’s international reserve forex standing.
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Pellegrino cited Tether’s rising function as one of many largest patrons of US Treasury payments on the earth as proof of the demand for US debt devices from stablecoin issuers.
Tether lately grew to become the seventh-largest holder of US Treasuries, beating out Canada, Germany, Norway, Hong Kong, and Saudi Arabia.
Talking on the White Home Crypto Summit on March 7, US Treasury Secretary Scott Bessent mentioned the Trump administration would leverage stablecoins to extend US dollar hegemony and indicated this is able to be a high precedence for officers in 2025.
Based on a 2023 report from Chainalysis, over 50% of all of the digital asset worth transferred to international locations within the Latin American area, together with Argentina, Brazil, Columbia, Mexico, and Venezuela was denominated in stablecoins.
The low transaction charges, relative stability, and near-instant settlement instances for dollar-pegged stablecoins make these real-world tokenized property ideal for remittances and shops of worth for residents in creating international locations affected by excessive inflation and capital controls.
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