Stablecoins will likely bolster the dollar’s role in the global financial system given the extent to which these digital assets are overwhelmingly tied to the dollar. Stablecoins and innovations in cross-border payment systems are “most likely to shape the future international monetary system,” according to the Fed’s summary of the event. Stablecoins are linked to the value of a fiat currency, such as the U.S. dollar or euro, with their value considered less volatile than other cryptocurrencies, such as Bitcoin and Dogecoin. About 97% of currency-backed stablecoins are tied to the U.S. dollar, according to a March report on stablecoins from the Financial Action Task Force, a 40-nation body that targets money laundering and terrorist financing. Christopher Waller noted that innovation in digital assets is shaping the dollar’s international role.