Fed’s Secret Weapon: Stablecoins Could Slash Rates!

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Sir Stephen Miran, the Fed’s resident wizard of finance, has warned that those shimmering, dollar-pegged stablecoins might just be the next big thing-like a giant chocolate factory made of numbers 🍫.

In a speech at the BCVC Summit, he mused that these coins, which store your savings in magical dollar-pegged coins, could flood the market with loanable funds, making interest rates as light as a feather 🪶.

Stablecoin Growth And Scale

The Fed’s own staff says stablecoins could grow like a beanstalk, reaching $1-3 trillion by the end of the decade. That’s enough to make even the most stoic central banker blink in surprise 🤯.

Miran compared this to the Fed’s own Christmas tree of Treasury bills, which now glows with $7 trillion of shiny coins. A new buyer? That’s like finding a golden ticket in a candy wrapper 🍬.

How It Could Lower Rates

Researchers have started to crunch the numbers, and it’s as if they’ve discovered a secret recipe. If stablecoins are backed by US securities, they could nudge interest rates down by 40 tiny steps ⚙️.

Big Buyers And Reserve Holdings

Some big names, like Tether, have been buying up Treasury bills like they’re the last cookies in the jar 🍪. One study claims they’ve got $98 billion stashed away-enough to make a squirrel jealous 🐿️.

This buying spree has made short-term yields as quiet as a mouse in a library 📚. Who knew coins could be so sneaky?

Risks And Policy Choices

Miran warned that regulatory clarity is the key to unlocking this magical mystery 🔑. He praised the GENIUS Act for keeping things safe, but cautioned that if stablecoins are just a fancy wrapping paper for old money, they’ll have no power to change the game 🎁.

The future? Uncertain as a foggy morning 🌫️. But one thing’s clear: stablecoins aren’t just for paying for snacks anymore-they’re a force of nature, and the Fed is watching like a hawk 🦅.

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2025-11-10 22:20