Global demand grows for non-dollar stablecoins, says Fireblocks exec
Governments outside the US, including Singapore, are showing increased interest in stablecoins not tied to the US dollar, despite their limited liquidity. Fireblocks director Dea Markova highlighted that the competition with dollar-pegged stablecoins is centered around sovereignty, drawing parallels to past tensions with US payment giants. Dollar-pegged stablecoins in the EU face significant challenges from central banks, with the European Central Bank pushing for a digital euro due to concerns over systemic risks linked to these stablecoins. The market capitalization of stablecoins is predominantly held by dollar-pegged coins, particularly Tether’s USDT and Circle’s USDC, which together account for 87.2% of the total market cap. The UAE is noted for its advanced regulatory approach, allowing stablecoin issuers to operate without local licensing, facilitating access to global liquidity. Abu Dhabi has recognized USDT and USDC as virtual assets and is working on a dirham-pegged stablecoin.
