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

Citibank said in its latest report that stablecoins not only have the potential to consolidate the dominance of the US dollar, but also challenge the claim that Bitcoin will one day end the dollar's hegemony. Analysts said in the report: "Initially, cryptocurrencies such as Bitcoin were considered competitors to central bank-issued currencies. In fact, some believed - and still believe - that Bitcoin could end the hegemony of the US dollar. However, USDT is challenging this statement." Citi pointed out that the vast majority of stablecoins are pegged to the US dollar, and the issuers hold both US dollars and US Treasuries. Analysts also said that if the US government further legalizes stablecoins, this could enhance the dominance of the US dollar. "Increased regulatory transparency may also further enhance the attractiveness of stablecoins. If so, the demand for US Treasuries by stablecoin issuers may increase from the current 1%. Therefore, this cryptocurrency will not replace the US dollar, but will make the US dollar more acceptable to the world and consolidate the US dollar's long-standing global dominance." (TheBlock)