Although I do see another scenario where stablecoins actually hurt the dollar. There are countries that are trying to create their own stablecoin, backed by their own currency
Isnt the currency in those countries already legal tender? How does that hurt the dollar? None of those currencies are international. They lack any "network effects" whatsoever.
Stablecoins actually enhance the USD.
I was talking about stablecoins backed by local currency. If everyone does it, there will be less demand for the dollar backed ones.
Why is there demand of the dollar now? And why would someone want a stablecoin backed by bolivar when many dont want it now?