Stablecoins are creating a "shadow currency market," and this perspective from Milan is quite interesting. Stephen Miran, a Federal Reserve governor, publicly stated at the BCVC summit in New York on Friday that stablecoins have become "a force that cannot be ignored." He believes that the widespread use and continued growth of stablecoins may exert "downward pressure" on long-term interest rates in the U.S. economy. His logic can be understood as follows: The increase in the issuance of stablecoins like USDT/USDC → A large amount of dollars flowing out of traditional bank deposits into the reserve accounts of stablecoin issuers → These reserves are invested in short-term U.S. Treasury bonds and repurchase agreements (Repos) → Lower yields → Decrease in interest rates. This behavior bypasses traditional bank lending and the Federal Reserve's reserve system, directly increasing the demand for short-term safe assets (Treasuries), effectively equivalent to increasing the supply of funds available for lending in the entire economy. According to the principle of supply and demand, an increase in the supply of funds, with demand remaining unchanged, will structurally lower the equilibrium interest rate r∗, which is the neutral rate. In other words, Miran believes that stablecoins are creating a "shadow currency market," the size of which has reached a level sufficient to structurally influence the macroeconomic cornerstone parameter r∗, the neutral rate. He argues that if the Federal Reserve ignores this decline in r, it equates to "tightening policy" (which poses a recession risk), effectively presenting a new argument for interest rate cuts: 1) The current mainstream view of the Federal Reserve (represented by Powell) mainly focuses on cyclical factors, such as the stickiness of CPI data, wage growth, and labor market tightness, to justify the necessity of maintaining high interest rates. 2) Miran introduces structural factors (i.e., the permanent suppression of r∗ neutral rate by stablecoins) to argue that the policy rate is relatively too high. If the neutral rate r∗ has systematically declined due to the rise of digital assets, then even in the current inflation environment, the existing level of the policy rate may be more restrictive than traditional models suggest. Of course, it should also be noted that as Trump's mouthpiece at the Federal Reserve (Miran was previously the chairman of the White House Council of Economic Advisers), many of Miran's views serve to promote continued interest rate cuts. This theoretical logic has a certain feasibility, but the question is that the dollar reserves of stablecoins are basically all used to purchase short-term U.S. Treasury bonds with maturities of six months or less. The significant increase in demand for short-term Treasuries will lower short-term Treasury yields; will this transmit to a decrease in the neutral rate?