Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

Federal Reserve Governor Stephen Miran argued that stablecoins’ potential multi-trillion dollar growth over the next five years will help push down interest rates.

A growing demand for US dollar-tied crypto stablecoins could help push down the interest rate, says US Federal Reserve Governor Stephen Miran.

The Donald Trump-appointed Miran told the BCVC summit in New York on Friday that the dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that doesn’t stimulate or impede the economy.

If the neutral rate drops, then the central bank would also react by dropping its interest rate, he said.

Read more