Peter Schiff: Stablecoins are a weak barrier to the dominance of the US dollar.

Gate News bot message, Peter Schiff believes that stablecoins, which are digital money pegged to the US dollar, will not play a key role in ensuring the future of the US dollar. He pointed out in a statement that the main use of stablecoins is for Crypto Assets trading, rather than for broader economic transaction mechanisms.

Peter Schiff also warned that the rising federal budget deficit and intensifying inflation will decrease the demand for non-interest bearing, dollar-pegged stablecoins. Prior to Peter Schiff's remarks, there were concerns that the purchasing power of the dollar would decline as national debt continues to increase.

Schiff believes that as the government's fiscal situation deteriorates, the demand for stablecoins as a store of value will decrease. He added that in an environment of high inflation and fiscal instability, stablecoins cannot fundamentally serve as a stable and reliable means of wealth storage.