Stablecoins Could Impact Federal Reserve's Interest Rates, Says Fed Governor

According to Odaily, Federal Reserve Governor Milan has stated that the widespread use of stablecoins could lead to a reduction in the Federal Reserve's interest rates. The increased use of stablecoins may also heighten the risk of hitting the zero lower bound on interest rates, potentially lowering the neutral interest rate. Additionally, the rise of stablecoins could promote broader use of the U.S. dollar, thereby increasing its value.