Fed Governor Stephan Miran Warns Stablecoin Boom Could Reshape Global Monetary Policy

U.S. Federal Reserve Governor Stephan Miran, the newest member of the Fed’s Board of Governors, has raised concerns over the rapid expansion of stablecoins and their potential to significantly influence global monetary policy. In a speech delivered at the BCVC Summit 2025 in New York, Miran projected that stablecoin adoption could surge to between $1 trillion and $3 trillion by the end of the decade.

“Stablecoins may become a multitrillion-dollar elephant in the room for central bankers,” Miran stated, noting that current outstanding U.S. Treasury bills total less than $7 trillion. He emphasized that the projected demand from stablecoins could create a substantial shift in global financial markets, potentially altering liquidity and investment patterns.

Miran, who previously served as an economic official under President Donald Trump, argued that the new Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) would limit stablecoins’ impact on U.S. bank deposits. Since the law does not directly authorize yield-bearing instruments, he expects most demand to stem from foreign markets seeking dollar-denominated assets.

He added that this influx could strengthen the U.S. dollar as foreign users increasingly turn to stablecoins backed by U.S. assets. “If global stablecoin demand rises due to shifts from foreign currencies into the U.S. dollar, it will likely make the dollar stronger,” Miran explained. “Depending on how this affects inflation and employment, monetary policy may have to respond.”

Highlighting the potential for innovation, Miran suggested that stablecoins could modernize U.S. financial infrastructure by improving payment systems and global access to dollars. “Stablecoins may well lead the way, facilitating dollar holdings and payments both domestically and abroad,” he concluded.