A leading FED decision-maker speaks out: stablecoins could change the global interest rate dynamics

Stephen Miran, an influential member of the U.S. Federal Reserve Board, presented a forward-looking analysis of the impact of stablecoins on the international financial system. In his recent televised speech, he suggested that the development of stablecoins could unleash an unprecedented wave of global investment, potentially putting pressure on the U.S. economy to lower interest rates.

Stablecoins and the parallel to the global savings boom

Miran referred to the historical concept of the “global abundance of savings,” which was described by Ben Bernanke two decades ago. During that period, Asian countries with significant current account surpluses transferred large amounts of capital in the form of investments in U.S. Treasury bonds. This process naturally lowered domestic interest rates. According to the expert, stablecoins could operate on a similar mechanism, serving as a modern channel for capital flows.

Where do stablecoins actually find application?

The FED representative explained that in wealthy economies with open capital markets (such as the USA), stablecoins offer limited benefits for savers. The reason is the lack of interest and deposit guarantees that traditional banking products can provide. However, the situation changes dramatically in countries with capital flow restrictions or where the banking system remains inaccessible to broader segments of society.

In these regions, stablecoins represent a breakthrough solution, enabling the population to access stable, dollar-denominated savings instruments. This property is likely to become the main growth vector for the stablecoin market—definitely beyond the borders of the United States.

Possible scale of the phenomenon and implications for monetary policy

Miran estimated that the potential influx of funds into stablecoins could reach about 30-33 percent of the previous global savings boom. The accumulated capital would be invested in dollar-denominated instruments supported by bank reserves and U.S. Treasury securities. If this scenario materializes, the pressure to reduce interest rates in the USA could be “significant” and long-lasting.

The discussion also covered a broader perspective on economic policy. Miran expressed the belief that supply-side incentives could drive economic growth without risking inflationary destabilization—an outlook aligned with the views of some contemporary economists.

Miran's statement reveals the growing interest of the financial establishment in the potential of stablecoins—this time not as a threat, but as a mechanism influencing global capital market dynamics and monetary policy.