Deutsche Bank – What Do Stablecoins Mean for Dollar Dominance, Sep 2023

The main theme of the report is the exploration of the role of stablecoins in maintaining the dominance of the US dollar as a global currency.

The document examines how stablecoins can support the dollar amidst growing competition in the global payments market. Key findings include that stablecoins could be the US's answer to protecting the dollar's position in global payments, offering a private sector solution instead of central bank digital currencies (CBDCs). The potential rise in the use of dollar stablecoins for cross-border payments could challenge Europe's efforts to promote the euro and China's ambitions to internationalize the yuan. Europe is advised to develop a stablecoin ecosystem issued by banks and corporations to maintain sovereignty in payments and global euro invoicing. China may face limitations in the stablecoin world due to its managed capital account and limited offshore yuan deposits.