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

While economists debate de-dollarization and the shrinking share of the dollar in global reserves, in the digital realm the U.S. currency is expanding its influence faster than ever.

The stablecoin market—cryptocurrencies pegged to the U.S. dollar—has surpassed $320 billion. Over 99% of all stablecoins worldwide are denominated in dollars. Every new digital dollar issued somewhere in the world translates into additional demand for U.S. Treasury bonds that back its reserves.

The world may be moving away from the dollar in real‑world transactions, but in the digital space it is only growing stronger. This creates a new reality in which the American currency finds unexpected support.

Photo: © Belnovosti / U.S. dollars. Author Vitaliy Kisterny What are stablecoins and why they work on the dollar

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

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

The size of the stablecoin market in 2026 exceeded $320 billion. That is more than the foreign‑exchange reserves of 95 countries worldwide. And almost all of these tokens are dollar‑denominated. Euro‑stablecoins, despite Europe's efforts,

China is also pushing its digital yuan. However, 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‑based stablecoins offer.

As a result, the 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‑based stablecoins to protect their savings. Companies use them for international settlements to bypass banking fees and sanctions.

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

The digital dollar expansion also has a dark side. The Bank of International Settlements warns that stablecoins enable the circumvention of capital controls and sanctions. During periods of financial stress, people in developing countries mass‑transfer their savings into dollar tokens, weakening national currencies and posing a threat to financial stability.

This creates a paradox for the United States itself. On one hand, dollar‑based stablecoins reinforce the position of the American currency worldwide. On the other hand, they allow sanctioned countries and companies to bypass restrictions. Iran, Russia, and other nations actively use cryptocurrencies for payments, and stablecoins play a significant role in this.

What comes next

The digital dollar will not replace the physical one, but it is becoming its continuation. While the world searches for alternatives to the American currency in real‑world settlements, stablecoins make the dollar indispensable in the digital realm. This is a new form of hegemony—less conspicuous but no less powerful.

The question is how long this will last. If other countries create competitive digital currencies and regulation in the United States tightens, the stablecoin market could shift. But until alternatives appear, the dollar remains the primary currency not only in the real world but also in the virtual one.

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