The Biggest Obstacle in the Bitcoin-Dollar War is Hidden Within the Crypto Sector! - Koin Bulletin

Citi Wealth strategists argue that stablecoins reinforce the global dominance of the US dollar, shaking the narrative of stablecoins ending Bitcoin's and the dollar's supremacy

Stablecoins are said to have the potential to strengthen the dominance of the US dollar in the global financial system and question the narrative that Bitcoin (BTC) will one day end the supremacy of the dollar, according to Citi Wealth strategists, who shared their views in a new report.

Cryptocurrencies like Bitcoin were initially designed as rivals to currency issued by central banks. Some even believed that Bitcoin would end the hegemony of the US dollar, and there are still believers.

Please provide the text to be translated. However, it was reported that this narrative is challenged by the fact that stablecoins make up more than four-fifths of cryptocurrency trading volume.

In Citi's report, it was emphasized that the majority of stablecoins are pegged to the US dollar and issuers hold both US dollars and Treasury bonds in their reserves.

In addition, it has been suggested that if the US government takes steps to further legitimize stablecoins, this could further strengthen the dominance of the dollar.

Clarifying regulations could further increase the appeal of stablecoins. If this happens, demand for US Treasury bonds by stablecoin issuers could rise above today's 1% level,

Stablecoins Stand Out

While Tether's USDT is currently by far the most popular stablecoin in the world, it is followed by Circle's USDC. Ripple announced last Tuesday that its stablecoin RLUSD has received final approval from the New York State Department of Financial Services, clearing the way for its launch.

Surpassed Visa

Citi also shared some data showing how widespread stablecoins are being used. The report stated, "By the first quarter of 2024, the total volume of stablecoin transactions reached 5.5 trillion dollars.

By comparison, Visa's volume over the same period was about $3.9 trillion," the report said. In response to this challenge, Visa**, PayPal and other traditional payment providers have begun to offer stablecoins or integrate their transactions into these new technologies.