Dea Markova, Fireblocks policy chief, highlighted an increasing interest among countries like Singapore in stablecoins that are not tied to the US dollar. She emphasized the importance of sovereignty in this shift, drawing parallels to previous tensions between US payment companies and governments. Currently, dollar-pegged stablecoins, such as Tether’s USDT and Circle’s USDC, dominate the market, comprising 87.2% of the total $241.8 billion market cap for stablecoins. Despite their regulatory compliance, dollar-pegged stablecoins face significant challenges from European central banks, prompting initiatives like the European Central Bank's accelerated development of a digital euro to address systemic risks associated with these stablecoins. Markova noted that the UAE is leading in regulatory approaches, allowing global stablecoin offerings without local licensing, contrasting with the more stringent requirements in Europe. The recent report from the Bank of Italy also raised concerns about the reliance on US Treasury bonds by dollar-pegged stablecoins.

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