Citibank: US dollar stablecoin is beneficial for consolidating the global dominance of the US dollar and will not replace it

Odaily Planet Daily News: Citibank stated in its latest report that stablecoins not only have the potential to consolidate the dominant position of the US dollar, but also challenge the notion that Bitcoin will one day end the dominance of the US dollar. Analysts stated in the report, "Initially, cryptocurrencies such as Bitcoin were considered competitors to central bank issued currencies. In fact, some people believe - and still believe - that Bitcoin may end the hegemony of the US dollar. However, USDT is challenging this claim Citi pointed out that most stable currencies are linked to the US dollar, while the issuer holds both the US dollar and US treasury bond bonds. Analysts also suggest that if the US government further legalizes stablecoins, it could enhance the dominance of the US dollar. The improvement of regulatory transparency may also further enhance the attractiveness of stablecoins. If so, the demand for US Treasury bonds from stablecoin issuers may increase from the current 1%. Therefore, this cryptocurrency will not replace the US dollar, but can make the US dollar more easily accepted by the world and consolidate its long-term global dominance. "(TheBlock)