Citibank: The stablecoin in US dollars helps to consolidate the global dominance of the US dollar, it will not replace the US dollar

Citibank stated in its latest report that stablecoins not only have the potential to consolidate the dominant position of the US dollar, but also challenge the notion that Bitcoin could one day end the hegemony of the US dollar. Analysts said in their report: "Initially, cryptocurrencies like Bitcoin were considered competitors to central bank-issued currencies. In fact, some people believed - and still believe - that Bitcoin might end the dominance of the US dollar. However, USDT is challenging this notion." Citibank pointed out that most stablecoins are pegged to the US dollar and issuers hold both dollars and U.S. Treasury bonds simultaneously. Analysts also suggested if further legalization of stablecoins by U.S government occurs, it may enhance USD's dominant position.