Carolyn Wilkins, a member of the Bank of England's (BOE) Monetary Policy Committee (MPC), stated that stablecoins could strengthen the US dollar's hegemony and increase demand for US Treasuries. According to Cointelegraph, she said in a recent university speech, "Dollar stablecoins can facilitate global payments and enhance access to dollar-denominated assets abroad outside the US." She added, "However, risk factors also exist. In the event of large-scale stablecoin redemptions, issuers may have to sell off large amounts of US Treasuries they hold to raise cash to pay customers. This could cause instability in the market, potentially increasing financial market volatility." She further emphasized, "The development of the stablecoin market is not just impactful for the cryptocurrency industry, but also holds significant implications for the international monetary system and financial markets."
