Schnabel Warns Stablecoins May Cement Dollar Dominance
European Central Bank board member Isabel Schnabel says the rapid spread of dollar-pegged stablecoins could reverse a long-term decline in the currency's global role. This trend may undermine monetary policy in some nations and eventually limit the euro's influence in tokenized finance.
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European Central Bank board member Isabel Schnabel warned that rising stablecoin adoption could cement the global dominance of the United States. The shift follows a two-decade decline in the dollar's share of global foreign exchange reserves, which fell below 57% last year. For investors, the trend suggests a potential reversal in the diversification of global liquidity away from the greenback.
