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Federal Reserve Board Member Milan: Widespread use of stablecoins may increase the risk of hitting the zero interest rate lower bound

Golden Finance reports that Federal Reserve Board Member Milan stated that the widespread use of stablecoins could increase the risk of hitting the zero interest rate lower bound. Heavy use of stablecoins may reduce the neutral interest rate; the rise of stablecoins could promote broader use of the US dollar, boosting its value and prompting the Federal Reserve to lower interest rates.

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