Stablecoins are the only finest instrument for the USA authorities to take care of the US greenback’s hegemony in international monetary markets, in accordance with 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 only finest instrument — 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 large inflation.”
The CEO mentioned he expects assist for stablecoins on each the federal and state ranges to develop due to the apparent increase stablecoins give to the US greenback in international trade 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 position as one of many largest consumers of US Treasury payments on the earth as proof of the demand for US debt devices from stablecoin issuers.
Tether lately turned 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 might 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 belongings ideal for remittances and shops of worth for residents in growing international locations affected by excessive inflation and capital controls.
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