Eswar S. Prasad, a former IMF official and current Cornell professor, has raised concerns about the impact of stablecoins on global currency dynamics. In his article "The Stablecoin Paradox," Prasad argues that while stablecoins can reduce payment costs and enhance cross-border transaction efficiency, they may also bolster U.S. dollar dominance and undermine the monetary sovereignty of smaller countries. He emphasizes that the perceived decentralization of stablecoins is misleading, as they depend heavily on trust in the issuing institutions, potentially leading to a concentration of financial power among major players.
Stablecoins Could Amplify Dollar Dominance, Warns Former IMF Official
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