The Dollar Is Crumbling. Fiat-Backed Stablecoins Are Next

Source: CryptoNewsNet Original Title: The Dollar Is Crumbling. Fiat-Backed Stablecoins Are Next Original Link: https://cryptonews.net/news/finance/32092085/ Stablecoins have had their ups and downs, but it’s clear they’re one of crypto’s biggest success stories so far. While Bitcoin may garner more of the headlines thanks to its constant ups and downs, stablecoins have emerged as the chief workhorse of the decentralized finance ecosystem, helping to shift more than $275 trillion worth of value across the globe.

However, there are signs that the U.S. dollar’s status as the world’s reserve currency is being eroded, and that could lead to some major consequences for the stablecoin economy, given that its top tokens are pegged to its value.

This year, the dollar has experienced a significant decline, losing around 11% in value – its largest decrease in over 50 years. This instability is driven by uncertainty around U.S. economic policies and its rapidly increasing, eye-watering debt, which now stands at a whopping $38 trillion. The U.S. keeps printing dollars, but in the meantime the world’s economic value is being moved elsewhere.