Why stablecoins will become more important and USD more dominant by Stripe - https://stripe.com/annual-updates/2024
In reasoning about stablecoins, two comparisons are relevant: the petrodollars and eurodollars. The petrodollar system refers to agreements between the US and Gulf states (originally just Saudi Arabia) to have international oil purchases priced in dollars and much of the proceeds reinvested in US Treasuries in exchange for military and security guarantees. These agreements created more demand for US dollars, in turn allowing America to maintain lower interest rates and strengthening the dollar’s position as the world’s preeminent reserve currency. Stablecoin issuers will, in a similar way, be large buyers of US debt and create more dollar strength. The eurodollar system in turn provides an interesting comparison around access to the dollar. Eurodollars refers to a system of US dollar storage at banks outside the United States—the confusing name stems from European banks being the first hub for this activity, though it now happens around the world. Eurodollars became very popular among non-US corporations despite being far unwieldier than stablecoins. We expect that stablecoins, as an easier-to-use and more accessible version of eurodollars, will bring similar benefits to a much broader group of actors. We further note with interest that, despite regulatory uncertainty in the United States, early stablecoin adoption has shown a notable US dollar preference, with an estimated 99% of stablecoin balances being USD-based.
