Bank of England official: Stablecoins may strengthen the dominance of the US dollar and increase demand for US bonds Odaily Planet Daily - Carolyn Wilkins, member of the Bank of England's (BoE) Financial Policy Committee, said that the growth of a stable dollar may strengthen the global dominance of the dollar and increase the demand for US treasury bond bonds. She pointed out in her speech at Queen's University Belfast that stablecoins in the US dollar can facilitate cross-border settlements and expand access to US dollar assets outside the United States. The USDT of Tether, the stable currency issuer, and the USDC of Circle, the financial technology company, hold nearly $150 billion of US treasury bond by the end of 2025, and bought about $33 billion in the same year. Wilkins pointed out that large-scale redemption of stable currency may force issuers to sell treasury bond, thereby amplifying the volatility of the pressure market. At present, the total circulation of stablecoins has exceeded 300 billion US dollars, of which 98% of the value is pegged to the US dollar. Wilkins stated that this has given the US dollar a significant first mover advantage, and the development impact of the stablecoin market has extended beyond the cryptocurrency sector. The development speed of GBP stablecoins is relatively slow. The UK Financial Conduct Authority has tested potential issuers through a specialized regulatory sandbox and finalized the UK stablecoin issuance rules in June; The Bank of England has also tested the feasibility of using stablecoins in conjunction with analog digital pounds for cross-border trade payments.