Above: President Trump signs the Genius Act. Official White House Photo.

For years, analysts have warned that the dollar’s position as the world’s reserve currency may be slipping.

Central banks from China to Russia have trimmed their dollar reserves, diversified into gold, and sought alternatives for trade settlement.

However, the U.S. has a plan B to shore up its currency.

This is according to new research from Handelsbanken, that finds the growth of stablecoin demand is also shoring up demand for U.S. treasuries, and the dollar.

"As China continues to reduce its exposure to the dollar system, there appears to be a growing need for a new backstop to support demand from new buyers," says Michel Gubel, an analyst at Handelsbanken.

Above: Stablecoins are countering the decline in Chin

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