[Perspective: Dollar Stablecoins May Further Strengthen Dollar Dominance and Exacerbate Financial Vulnerabilities] At the 2026 Jackson Hole Global Central Bank Annual Meeting, Cornell University professor Eswar Prasad presented a paper co-authored with Gordon Liao and Tony Zhang titled *Financial Innovation and the International Monetary System*. The paper pointed out that although the share of the U.S. dollar in global foreign exchange reserves has declined from 72% in 2000 to 57% in the first quarter of 2026, its relative dominance in cross-border payments, foreign exchange trading, and international bond financing remains solid. The model indicates that settlement innovations represented by dollar stablecoins are unlikely to weaken the dollar's position; instead, they may attract more emerging market firms to the dollar debt market by reducing the cost of accessing dollar-denominated settlement assets. In the baseline calibration, the proportion of emerging market firms using dollar financing rises from 36% without stablecoins to 88%, a figure that serves as an illustrative result of the model.