The dominance of US dollar-pegged stablecoins in the global market has raised concerns among EU officials about the potential impact of President Trump’s plans to promote the dollar through these digital assets. According to recent data, 97% of the stablecoin market is currently dominated by stablecoins pegged to the US dollar, such as Tether and USD Coin.

Stablecoins are a type of cryptocurrency that are designed to maintain a stable value, usually by being pegged to a fiat currency like the US dollar. They have gained popularity in recent years as a way to mitigate the volatility of traditional cryptocurrencies like Bitcoin. However, the overwhelming dominance of US dollar-pegged stablecoins has sparked concerns about the potential for the US dollar to maintain its global dominance through these digital assets.

EU officials are worried that the widespread use of US dollar-pegged stablecoins could give the US government too much control over the global financial system. With the US dollar already being the world’s reserve currency, the fear is that the use of stablecoins could further solidify the dollar’s dominance and potentially undermine the stability of other currencies.

This concern is particularly relevant in light of President Trump’s recent comments about the US dollar and his desire to see it remain the world’s dominant currency. Some experts believe that the promotion of stablecoins could be a strategic move by the US government to maintain its economic power and influence on a global scale.

While stablecoins do offer benefits such as faster and cheaper cross-border transactions, the potential risks and implications of their widespread use cannot be ignored. As the EU continues to monitor the situation and assess the potential impact on the global financial system, it is clear that the dominance of US dollar-pegged stablecoins is a topic that will continue to be closely watched and debated.