One of the most influential venture funds included stablecoins in the list of priority projects

BestChange
2 min readFeb 20, 2024

Almost 100% of stablecoins are pegged to the US dollar. This helps strengthen the dominant position of the US national currency, says Christopher Waller, a member of the Board of Governors of the Federal Reserve System.

“People often conjecture that cryptocurrencies like Bitcoin may replace the US dollar as the world’s reserve currency. But most trading in decentralized finance involve trades using stablecoins, which link their value one-for-one to the US dollar. About 99% of stablecoin market capitalization is linked to the U.S. dollar.” the Fed official said.

In his opinion, the rapid development of the crypto industry will not deprive the dollar of its status as a reserve currency, but, on the contrary, will strengthen its influence.

“I do not expect to see the US dollar lose its status as the world’s reserve currency anytime soon. Recent developments that some have warned could threaten that status have, if anything, strengthened it, at least so far,” the expert noted.

Earlier, Christopher Waller criticized the initiative involving the release of cryptod ollars. The expert believes that such assets will not contribute to the strengthening of the American currency in the global market.

Interestingly, the well-known venture fund Y Combinato included stablecoins in the list of priority startups this year. Representatives of the business incubator noted that they plan to invest in startups that produce consumer products based on “stable coins,” as well as in instruments that provide financing for stable coins.

“There has been a lot of debate about the benefits of blockchain. However, it is becoming clear that stablecoins are an important part of the future of money. The firms we support have a long history of using digital assets to enable cross-border payments and reduce transaction fees to help users protect their savings from hyperinflation,” the fund said.

Y Combinator estimated that a total of $136 billion worth of stablecoins had previously been issued. About 7 million users have made transactions involving such assets at least once, which indicates the significant potential of such products.

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