Speaking in New York on Nov. 7, Miran explained that the rise of stablecoins, boosted by the recently enacted Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, represents a structural shift in global finance. Miran said demand for dollar-backed tokens can trigger “a substantial and long-term force putting downward pressure” on the neutral interest rate, or r*. As more people and companies buy dollar-backed stablecoins backed by U.S. Treasurys, it increases the flow of money into the financial system, pushing down yields and interest rates. This can be good in the short term because it ... (full story)