Fed Governor Miran Says Stablecoin Expansion Could Lower U.S. Neutral Rate by 40 Basis Points

Federal Reserve Governor Stephen I. Miran said the stablecoin market could reach $1 trillion to $3 trillion by 2030, potentially reducing the U.S. neutral interest rate by up to 40 basis points. Miran explained that increased demand for Treasury securities and dollar-linked assets from stablecoin reserves may push down borrowing costs. He drew parallels to the early-2000s global savings glut that previously depressed rates worldwide.