Williams asks how payment technology and digital asset adoption affect the dollar's international reach.
“How do changes in payment technology and digital asset adoption alter the dollar’s international reach?”
Williams reports banks say instant 24/7 payments and stablecoins could increase their demand for reserves.
“Respondents widely noted that movement toward instant 24/7 payments could increase their demand for reserves, and some also indicated that greater adoption of payment stablecoins could have similar implications.”
Williams says banks cite liquidity regulation changes and 24/7 payments transition as key drivers of reserve demand.
“Banks cite changes to liquidity regulations, as well as shifts in liquidity management amid the transition toward 24/7 payments and the adoption of payment innovations, as important drivers of their preferred levels over the next two years ( Panel 11 ).”