ChainThink report: Eswar S. Prasad, former official at the International Monetary Fund and professor at Cornell University, in his latest article titled "The Stablecoin Paradox," points out that while stablecoins reduce payment costs, improve cross-border transfer efficiency, and to some extent promote financial inclusion, their essence may actually reinforce centralized financial power, intensify the dominance of the U.S. dollar, and reshape the international monetary system.

He argues that stablecoins are not truly decentralized—users rely on issuers rather than code for trust. With U.S. legislation easing, potential entry by tech giants such as Amazon and Meta, and major banks exploring stablecoin issuance, a future scenario of "dominance by leading institutions in stablecoins" may emerge.

Meanwhile, the global expansion of U.S. dollar-denominated stablecoins could further erode the monetary sovereignty of smaller nations.