Economist and market commentator Peter Schiff raised doubts about the potential of stablecoins to uphold the U.S. dollar’s dominance on Wednesday, stating that their primary use would be in cryptocurrency trading.

What Happened: Schiff took to X, disputing the widely touted role of stablecoins in helping the U.S. economy.

“Rising federal budget deficits and higher inflation will erode demand for non–interest-bearing U.S. dollar–pegged stablecoins,” Schiff argued.

He added that stablecoins will fail to preserve the dollar’s role as the global reserve currency, as claimed, with their primary use case as trading pairs with other cryptocurrency tokens.

See Also: Anthony…

Read more on Benzinga