Citibank: Stablecoin helps strengthen the hegemony of the US dollar, rather than replace encryption

BlockBeats news, on December 12, in its latest report, Citibank believes that Stable Coin not only has the potential to consolidate the dominance of the US dollar, but also challenges the notion that BTC will eventually end the dominance of the US dollar. Analysts in the report stated: ‘Initially, Cryptocurrency such as BTC was considered a competitor to Central Bankissuance coins. In fact, some people believe - and still do - that BTC may end the dominance of the US dollar. However, USDT is challenging this notion.’ Citibank pointed out that the vast majority of Stable Coins are pegged to the US dollar, and the issuance party holds both US dollars and US Treasury bonds. Analysts also stated that if the US government further legalizes Stable Coin, this may enhance the dominance of the US dollar. ‘The increase in regulatory transparency may also further enhance the attractiveness of Stable Coin. If so, the demand for US Treasury bonds by Stable Coinissuance parties may rise from the current 1% level. Therefore, this type of Cryptocurrency will not replace the US dollar, but can make the US dollar more easily accepted by the world and consolidate its long-standing global dominance.’