Web3 CEO: Stablecoins Boost US Dollar Dominance

Stablecoins are the most effective tool the U.S. government has to uphold the dominance of the U.S. dollar in global financial markets, according to Bryan Pellegrino, CEO and founder of LayerZero Labs.

In an interview with Cointelegraph, Pellegrino, whose company developed the LayerZero interoperability protocol recently selected by the state of Wyoming as the distribution partner for its stablecoin, emphasized that the accessibility of dollar-pegged tokens across borders makes them a natural driver of global demand for the U.S. dollar. He stated:

“Stablecoins for the US dollar are the single best tool — the last Trojan Horse or vampire attack on every single other currency in the world — whether it is Argentina, whether it is Venezuela, whether it is all of the countries that have massive inflation.”

Pellegrino predicted increased support for stablecoins at both the federal and state levels, citing the competitive edge they offer the U.S. dollar in foreign exchange markets and the strong defensive position they help build around its role as a global reserve currency.

He pointed to the rising influence of Tether as an example, highlighting that it has become one of the world’s largest buyers of U.S. Treasury bills, recently surpassing countries such as Canada, Germany, and Saudi Arabia in holdings.

During the White House Crypto Summit on March 7, U.S. Treasury Secretary Scott Bessent said the Trump administration intends to leverage stablecoins to reinforce the dollar’s global standing, and that this objective would be a central focus in 2025.

A 2023 Chainalysis report found that over half of all digital asset transfers to Latin American nations — including Argentina, Brazil, Colombia, Mexico, and Venezuela — were made in stablecoins.

The combination of low fees, consistent value, and fast settlement makes dollar-backed stablecoins well-suited for remittances and savings in countries dealing with high inflation and strict capital controls.

Sources:

https://cointelegraph.com/news/stablecoins-best-way-ensure-us-dollar-dominance-web3-ceo

https://www.chainalysis.com/blog/latin-america-cryptocurrency-adoption/

https://app.rwa.xyz/stablecoins