Polygon CEO says stablecoins will strengthen the dollar's global power

• Sandeep Nailwal says stablecoins are a new “dollarization 2.0” boosting the US dollar.
• Nailwal argues that stablecoins shift the dollar's influence from businesses to access to consumers.
• He said that contrary to Dalio's warnings, stablecoins are deeply embedding the dollar in global finance.

Polygon Foundation CEO Sandeep Nailwal said the US dollar could gain further momentum in the short to medium term. His comments directly contradict Bridgewater Associates founder Ray Dalio, who has warned that rising U.S. debt could erode the dollar's global dominance.

Mr. Nailwal shared his views on X and argued that stablecoins are reshaping the way the dollar and global markets interact. He described the ongoing transformation as “Dollarization 2.0” and said this shift is already being played out across the developing world.

Stablecoins will redefine dollarization around the world

Nailwal said stablecoins are not only creating constant demand for U.S. Treasuries, but are also changing the dollar's relationship with the world. Traditionally, the dollar's influence worked at the corporate and government level.

According to Nailwal, stablecoins have extended this relationship to the business and consumer level. Anyone with an internet connection can now hold and spend digital dollars directly through the blockchain system. He said the change represents a new phase of dollarization that gives individuals the same access that was once limited to institutions.

He said stablecoins are increasing the dollar's power by making it available to anyone with an internet connection. Nailwal pointed to rapid adoption in Latin America and Africa, where inflation and weak banking infrastructure are driving people towards digital dollars.

Across these regions, stablecoins like Tether’s USDT and Circle’s USDC have become the preferred means of savings and payments. According to data from DeFiLlama, the total stablecoin market is now over $300 billion, with usage rapidly increasing in emerging markets.

Governments face new financial pressures

Nailwal also warned that this trend could challenge a nation's monetary sovereignty. He said governments will come under increasing pressure to allow and promote “open-loop” local stablecoins to remain competitive.

Such a system would allow citizens to transact using digital dollars while maintaining local control through a regulatory framework. Nailwal said this approach could help balance innovation and oversight in a rapidly digitizing economy.

Stablecoins are now becoming key to decentralized finance (DeFi) systems and global payments infrastructure. As blockchain adoption grows, stablecoins are bringing together traditional finance and decentralized ecosystems to provide faster and cheaper cross-border transactions.

Nailwal counters Ray Dalio's dollar warning

His comments are in direct contrast to the views of Ray Dalio, who warned that U.S. financial troubles could weaken the dollar's reserve currency status. Financial challenges. Dalio argued that excessive money printing, political division and rising debt could undermine confidence in the dollar around the world.

But Nailwal believes stablecoins are strengthening rather than weakening the dollar's reach. He said incorporating the digital dollar into blockchain systems used around the world allows the U.S. currency to operate closer to end users than ever before.

Related: President Trump says cryptocurrencies will ease pressure on dollar

He argued that this on-chain integration will give the dollar a new level of global connectivity that cannot be matched by traditional systems. Both perspectives highlight how blockchain technology and stablecoins are changing global finance. As “Dollarization 2.0” unfolds, the dollar remains central to this digital shift. More powerful, faster, and more accessible to people around the world.