Two economists at the Amsterdam-based think tank AMRO have warned that America's lead in AI-linked energy, infrastructure, production, and payment systems could reinforce the dollar's global dominance through stablecoins. The warning comes as stablecoins and other digital currencies surge alongside the AI economy.
Stablecoins as a Dollar Tool
The economists argue that stablecoins — digital tokens pegged to fiat currencies like the dollar — could become the preferred medium for AI-driven transactions. Early network effects, they say, might give dollar-pegged stablecoins an insurmountable advantage over rivals. That would effectively extend the dollar's hegemony into the digital age, even as the physical economy shifts.
Other Options on the Rise
But stablecoins aren't the only game in town. Other digital currencies and payment rails are also surging as drivers of the AI economy. The AMRO economists note that these alternatives could challenge the dollar's position — but only if they gain enough traction before network effects lock in the dollar's advantage.
What the Warning Means
The analysis doesn't prescribe specific policies, but it adds to a growing debate about the intersection of AI and finance. If the U.S. maintains its edge in AI-related energy and infrastructure, the economists suggest, the dollar's role could be cemented for decades. The question now is whether other nations can build competitive digital payment systems fast enough to prevent a new era of dollar hegemony.
