Federal Reserve Governor Milan: Widespread use of stablecoins may increase the risk of hitting the zero lower bound on interest rates

Jinse Finance reported that Federal Reserve Governor Milan stated that the widespread use of stablecoins could increase the risk of reaching the zero lower bound on interest rates, and that extensive use of stablecoins might lower the neutral interest rate; the rise of stablecoins could also promote broader use of the US dollar, increase the value of the dollar, and lead to lower interest rates by the Federal Reserve.