Stephen Miran: Stablecoins may become multi-trillion dollar elephant in the room for central banks

Stablecoin Impact on Monetary Policy - New Fed governor Steven Myron suggests stablecoins could significantly impact monetary policy [1] - Stablecoins are described as potentially becoming a multi-trillion dollar factor for central banks [2] - The adoption of stablecoins could reach $1 trillion to $3 trillion by the end of the decade [2] - Stablecoins may reduce barriers to dollar usage globally, providing access to dollars for the financially repressed [2] Interest Rate Implications - Widespread stablecoin use could reduce interest rates by as much as 40 basis points (0.4%) [4] - The growth of stablecoins could increase the supply of loanable funds, putting downward pressure on the neutral rate [4] - A lower neutral rate, influenced by stablecoins, suggests a need for lower policy rates [5]