{"id":90833,"date":"2025-11-10T14:36:57","date_gmt":"2025-11-10T11:36:57","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=90833"},"modified":"2025-11-10T14:40:21","modified_gmt":"2025-11-10T11:40:21","slug":"federal-reserve-member-warns-of-stablecoins-impact-on-monetary-policy","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/federal-reserve-member-warns-of-stablecoins-impact-on-monetary-policy\/","title":{"rendered":"Federal Reserve Member Warns of Stablecoins&#8217; Impact on Monetary Policy"},"content":{"rendered":"<p>The increasing demand for dollar-pegged <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">\u201cstablecoins\u201d<\/a> could lead to a reduction in the key interest rate, according to Federal Reserve Board member <span data-descr=\"Federal Reserve System of the USA\" class=\"old_tooltip\">Fed<\/span> Steven Miran, speaking at the BCVC summit in New York.<\/p>\n<p><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/MwinwzLHPPY?si=AXFjSf_H6O6nVc2D\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>According to him, stablecoins increase foreign buyers&#8217; interest in U.S. Treasury bonds and other dollar liquid assets. The official referred to these assets as a \u201cmulti-trillion-dollar elephant in the room for central banks.\u201d<\/p>\n<p>At the time of writing, the capitalization of the \u201cstablecoins\u201d sector stands at $311 billion. The Fed forecasts this figure to grow to $3 trillion over the next five years, Miran stated.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"347\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-efbfb5d995ef2d3d-9167200699377172-1024x347.png\" alt=\"image\" class=\"wp-image-269324\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-efbfb5d995ef2d3d-9167200699377172-1024x347.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-efbfb5d995ef2d3d-9167200699377172-300x102.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-efbfb5d995ef2d3d-9167200699377172-768x260.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-efbfb5d995ef2d3d-9167200699377172-1536x521.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-efbfb5d995ef2d3d-9167200699377172.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.coingecko.com\/en\/categories\/stablecoins\">CoinGecko<\/a>.<\/figcaption><\/figure>\n<p>The Fed representative praised the GENIUS Act, <a href=\"https:\/\/forklog.com\/en\/news\/donald-trump-enacts-stablecoin-legislation\">signed<\/a> by U.S. President Donald Trump in July. The document imposes requirements on stablecoin issuers and establishes clear regulatory frameworks for their activities in the United States.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWhile I am usually skeptical of new initiatives, [the GENIUS Act] is very encouraging. It establishes legitimacy and accountability comparable to the standards for traditional dollar assets,\u201d commented Miran.<\/em><\/p>\n<\/blockquote>\n<p>The official noted that \u201cstablecoins\u201d should be fully backed by liquid assets at a 1:1 ratio. According to him, this requirement is crucial from a monetary policy perspective.<\/p>\n<p>Back in October, Multicoin Capital co-founder Tushar Jain <a href=\"https:\/\/forklog.com\/en\/news\/us-banks-risk-6-6trn-deposit-flight-under-the-genius-act\">warned<\/a> that U.S. banks could lose $6.6 trillion due to the GENIUS Act. He stated that the legislation would lead to a massive outflow of deposits from traditional structures into more profitable stablecoins.<\/p>\n<p>However, Coinbase&#8217;s head of policy, Faryar Shirzad, <a href=\"https:\/\/forklog.com\/en\/news\/coinbase-dismisses-banks-concerns-over-stablecoins-as-overblown\">called<\/a> these concerns exaggerated.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The increasing demand for dollar-pegged stablecoins could lead to a reduction in the key interest rate, according to Federal Reserve Board member Steven Miran.<\/p>\n","protected":false},"author":1,"featured_media":90834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Stablecoins may reduce key interest rates, says Fed's Steven Miran.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[36,807,26],"class_list":["post-90833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-regulation","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"166","promo_type":"1","layout_type":"1","short_excerpt":"Stablecoins may reduce key interest rates, says Fed's Steven Miran.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=90833"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90833\/revisions"}],"predecessor-version":[{"id":90835,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90833\/revisions\/90835"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/90834"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=90833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=90833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=90833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}