Over 98% of stablecoins are dollar backed. That’s good for the U.S.—until it’s not

Stablecoins, a form of cryptocurrency pegged to a real world asset, are becoming part of the global financial system, with firms like Visa and Stripe rushing to distribute them. They are also overwhelmingly dollar based. While there are euro stablecoins and gold stablecoins, more than 98% of the total market supply is pegged to the greenback, and that will have major consequences for the future of the global economy say experts.

Speaking at the Milken Institute conference in Beverly Hills on Tuesday, Haseeb Qureshi of the venture capital firm Dragonfly noted that stablecoins are loosening the iron grip that governments have always wielded over their populations’ money supply.

“Stablecoins are intrinsically subversive. Most people in the world live under capital controls and don’t have the freedom to own whatever financial assets they want,” he said.

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