During a conference on February 15, Waller highlighted that 99% of stablecoin market capitalization is tied to the US dollar. Even the two largest stablecoins, USDT and USDC, account for 90% of the total market capitalization.
“Although many believe cryptocurrencies like Bitcoin could potentially replace the US dollar as a reserve currency, the reality is that a majority of transactions in the cryptocurrency market, particularly in the DeFi sector, involve stablecoins that are pegged to the dollar. Crypto assets are essentially traded in US dollars. Therefore, any increase in trading volumes within the DeFi space would likely reinforce the prominence of our currency,” Waller explained.
Waller did acknowledge that the rapid growth of cryptocurrencies could lessen reliance on the US dollar, posing a potential challenge to its status. However, he stated that there are currently no indications of the dollar’s dominance weakening.
“I do not foresee the US dollar losing its position as the world’s reserve currency in the foreseeable future. Recent events, which some feared would undermine this status, have actually bolstered it,” Waller concluded.
It is worth noting that in the United States, efforts to regulate stablecoins are ongoing, and it is possible that a bill will be passed in the near future.