Stablecoins have the potential to temper the systemic threats posed by the United States dollar’s domination of global foreign currency reserves, according to an opinion piece published by the World Economic Forum (WEF).
The argument was made by the Fusion Foundation’s John Liu and Lapa Capital’s Peter Lyons in an article published on the WEF’s Agenda on Nov. 26
The Fusion Foundation is a non-profit organization focused on developing blockchain infrastructure for decentralized global finance; Lapa Capital is a tech-focused investment firm headquartered in New York.
IMF: USD accounts for 62% of all central bank foreign reserves
Liu and Lyons advocate the wide-ranging potential of stablecoins to underpin a more “sustainable, inclusive, and resilient global system” across trade and investment, banking and payments.
Until today, the authors note, the U.S. dollar continues to account for 62% of all foreign reserves held by central banks, as IMF data for Q1 2019 has demonstrated….CLICK for complete article