Miran Sees Stablecoins Driving Lower Interest Rates

Governor Stephen Miran Sees Stablecoins Driving Lower Interest Rates

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 10, 2025

Key Takeaways

Stephen Miran said rising demand for dollar-backed stablecoins could push down the Fed’s neutral rate and lead to lower interest rates;
Fed research shows stablecoins, worth $310.7 million, could grow to $3 trillion within five years;
Miran praised the GENIUS Act for giving stablecoins credibility and requiring issuers to fully back tokens with safe dollar assets.

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US Federal Reserve Governor Stephen Miran stated that the rising use of dollar-backed stablecoins may influence how low interest rates could go.

Speaking at the BCVC Summit in New York, Miran explained that stablecoins linked to the US dollar are driving increased demand for Treasury bills and other short-term US assets, especially from foreign buyers.

He said this demand could put downward pressure on what economists call the "neutral rate", the rate that keeps the economy steady without boosting or slowing growth.

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If that neutral rate declines, the Federal Reserve would likely lower its benchmark rate.

According to Miran, the total market value of all stablecoins is about $310.7 million. Internal Fed research suggests the market could expand to as much as $3 trillion within the next five years. He said:

Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.

Miran also highlighted the GENIUS Act as an important step toward building trust in stablecoins. He said that while he usually views new regulations with caution, this law gives digital dollar tokens more credibility by setting clear rules and consumer protections.

He added that the GENIUS Act’s most notable feature for monetary policy is its rule that US-based stablecoin issuers must hold reserves equal to their issued tokens.

Recently, Canada prepared new national rules for stablecoins, with plans outlined in the 2025 federal budget. What does the proposal include? Read the full story.