Author and Editor-in-Chief: Vitaly Kisterny 14.09.2026 07:05:00

While economists debate de-dollarization and the declining share of the dollar in global reserves, in the digital space the American currency is expanding its influence faster than ever.

The stablecoin market — cryptocurrencies pegged to the U.S. dollar — has exceeded $320 billion. More than 99% of all stablecoins in the world are denominated in dollars. Every new digital dollar issued somewhere in the world means additional demand for U.S. Treasury bonds, which back its reserves.

The world may be turning away from the dollar in real-world settlements, but in the digital space it is only getting stronger. And this creates a new reality in which the American currency finds an unexpected foothold.

Photo: © Belnovosti / US dollars. Author Vitaly Kisterny

What are stablecoins and why they work for the dollar

Stablecoins are cryptocurrencies whose value is pegged to a real asset. In the vast majority of cases, that asset is the U.S. dollar. The issuing company holds one real dollar in reserve for every digital token issued. These reserves are typically invested in U.S. government bonds — the most reliable securities in the world.

The result is a paradoxical situation. Cryptocurrencies were created as an alternative to the traditional financial system and state currencies. But the largest of them — stablecoins — turned out to be a tool that strengthens the dollar. The more people and companies around the world use stablecoins, the more U.S. bonds issuers buy, the higher the demand for the dollar.

The stablecoin market volume exceeded $320 billion in 2026. That is more than the currency reserves of 95 countries. And almost all of these tokens are dollar-denominated. Euro stablecoins, despite Europe's efforts, account for less than 1% of the market.

Why the world chooses digital dollars over a digital euro

The European Union spent years developing a digital euro. But while officials debated regulation, the market had already been captured by dollar stablecoins. When the strict MiCA rules came into force in Europe in 2026, they did not help euro stablecoins — on the contrary, the ban on paying interest on tokens made them less attractive than their dollar counterparts.

China is also promoting the digital yuan. But its use outside the country remains limited. The yuan is not fully convertible, and Beijing maintains strict control over capital flows. For foreign users, this means less freedom than dollar stablecoins provide.

As a result, a world that is gradually moving away from the dollar in the real economy is voting for it in the digital space. People in high-inflation countries—Argentina, Turkey, Nigeria—buy dollar stablecoins to protect their savings. Companies use them for international settlements to bypass bank fees and sanctions.

The dark side: sanctions, circumvention, and risks for developing countries

The digital dollar expansion also has a dark side. The Bank for International Settlements warns that stablecoins allow circumventing capital controls and sanctions. In times of financial stress, people in developing countries massively transfer savings into dollar tokens, which weakens national currencies and poses a threat to financial stability.

This creates a paradox for the United States itself. On the one hand, dollar stablecoins strengthen the position of the American currency in the world. On the other, they allow sanctioned countries and companies to circumvent restrictions. Iran, Russia, and other countries actively use cryptocurrencies for settlements, and stablecoins play a significant role in this.

What's next

The digital dollar will not replace the real one, but it is becoming its extension. While the world seeks alternatives to the American currency in real settlements, stablecoins make the dollar indispensable in the digital space. This is a new form of hegemony—less visible, but no less powerful.

The question is how long this will last. If other countries create competitive digital currencies and US regulation tightens, the stablecoin market could change. But for now, with no alternatives, the dollar remains the main currency not only in the real world but also in the virtual one.

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