Stablecoins may drive re-dollarization, says Santiago Capital CEO

Brent Johnson, CEO of Santiago Capital, suggests that stablecoins may facilitate 're-dollarization' rather than accelerating de-dollarization. He argues that dollar-based stablecoins could increase global reliance on the US currency by making it easier for citizens in various countries to hold dollars instead of local currencies.

In the United States, the Federal Reserve has moved toward formalizing the cryptocurrency sector by releasing two regulatory proposals under the GENIUS Act. These proposals aim to establish a regulatory framework for stablecoin issuers, requiring them to back issuances with permitted reserve assets such as short-term US Treasuries. Additionally, the proposals outline licensing and reporting requirements for banks that issue stablecoins.

Amidst these developments, the cryptocurrency market has seen Bitcoin trading around the 115 million won level. While US Treasury yields have reached significant highs, impacting global debt structures, the crypto market remains active as institutional frameworks continue to evolve.