BoE Official Says Dollar Stablecoin Growth Could Reinforce U.S. Dollar Dominance

Bank of England Financial Policy Committee member Carolyn Wilkins said the growth of dollar stablecoins could strengthen the U.S. dollar’s global dominance and increase demand for U.S. Treasurys. According to Odaily, she made the remarks during a speech at Queen’s University Belfast and said dollar stablecoins can facilitate cross-border settlement and expand access to dollar assets outside the United States. Wilkins said Tether’s USDT and Circle’s USDC held nearly $150 billion in U.S. Treasurys by the end of 2025 and bought about $33 billion during the year. She added that large-scale stablecoin redemptions could force issuers to sell Treasurys, amplifying market volatility. She also said total stablecoin circulation has exceeded $300 billion, with 98% of its value pegged to the dollar. Wilkins said this gives the dollar a significant first-mover advantage and that stablecoin market development now has implications beyond the crypto sector. Wilkins said sterling stablecoin development has been slower. The U.K. Financial Conduct Authority has used a dedicated regulatory sandbox to test potential issuers, finalized stablecoin issuance rules in June, and the Bank of England has also tested the feasibility of using stablecoins together with a simulated digital pound for cross-border trade payments.