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A Bank of England Financial Policy Committee member, Carolyn Wilkins, warned that dollar-denominated stablecoins could reinforce the US dollar’s global role and raise demand for US Treasurys as issuers hold government debt as reserves. She said the growing market for digital dollars may ease cross-border settlement and expand access to dollar assets, while also posing risks to Treasury market stability if large redemptions force issuers to sell bills.
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