Catenaa, Tuesday, November 11, 2025-Federal Reserve Governor Stephen Miran said stablecoins are “a force to be reckoned with” and could exert downward pressure on US interest rates.
Speaking at the BCVC Summit in New York, Miran highlighted that stablecoins’ rapid growth increases the net supply of loanable funds, which can reduce the neutral rate of interest, or r, influencing monetary policy decisions.
Miran, confirmed as Fed governor in September, noted that even conservative estimates of stablecoin adoption suggest significant economic impact.
Greater stablecoin circulation could push r lower, meaning policy rates might also need to be lower to maintain a healthy economy.
While Miran expressed uncertainty about the broader trajectory of the cryptocurrency market, he emphasized that innovation in digital assets is already affecting the economy and monetary policy.
His comments come amid debates over potential interest rate cuts, with Miran signaling support for reductions, including expectations for cuts in December.
Miran’s remarks reflect a growing recognition within the Fed of digital assets’ influence on traditional financial systems. He noted that stablecoins, in particular, could materially affect credit availability, liquidity, and overall market dynamics, which are key considerations for central bank policy.
The Fed has previously focused more on regulatory frameworks and oversight of cryptocurrencies, but Miran’s statements indicate that stablecoin adoption could have direct implications for interest rate management and broader economic stability.
