According to Mihir (@RhythmicAnalyst), the Federal Reserve currently has no platform to launch a Central Bank Digital Currency (CBDC), making stablecoins issued on public and private blockchains the only viable alternative for digital dollar settlements (source: Twitter, May 6, 2025). This development signals increased reliance on established USD-backed stablecoins like USDT and USDC, particularly on public blockchains, while banks are expected to utilize private blockchain-based stablecoins for institutional transfers. Traders should monitor potential demand surges and regulatory developments around major stablecoins, as well as the adoption rates of private blockchain solutions, since these factors could drive liquidity shifts and volatility in the broader cryptocurrency market.

According to Mihir (@RhythmicAnalyst), the annual transaction volume related to treasure transactions surpasses 1.3 billion, indicating a significant demand for a stable and secure blockchain solution. However, Mihir notes that currently, no blockchain in production can adequately support this level of transaction aggregation, suggesting that traders and stakeholders should be cautious in adopting existing blockchain technologies for such purposes.