Stablecoins are increasingly viewed as essential for maintaining the US dollar's dominance as the global reserve currency. Bryan Pellegrino, CEO of LayerZero Labs, asserts that dollar-pegged stablecoins are the most effective tool for the US government to enhance the dollar's demand globally, especially among countries facing economic instability, like Argentina and Venezuela. He describes stablecoins as a 'Trojan Horse' that has the potential to disrupt other currencies worldwide. Pellegrino expects increasing support for stablecoins from federal and state levels due to their ability to bolster the US dollar's position in foreign exchange markets. He highlights Tether's role as a major investor in US Treasury bills, indicating strong demand for US debt from stablecoin issuers. A 2023 report from Chainalysis revealed that over 50% of digital asset transactions in Latin America were conducted in stablecoins, underscoring their appeal in regions afflicted by inflation and capital controls due to low fees and fast settlement times.

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