Stablecoins as monetary infrastructure: how programmable US dollars are reshaping financial governance

Not so long ago, stablecoins were introduced as a solution to a simple problem: volatility. In a digital asset ecosystem defined by rapid price swings, stablecoins promised a familiar anchor - tokens pegged to fiat currencies (most commonly the US dollar) that could move quickly without losing value. For years, this framing dominated public discourse. Stablecoins were treated as neutral payment tools, little more than digital cash equivalents for trading, remittances and settlement. However, that framing no longer captures reality. Now, into 2026, stablecoins have evolved into something far more consequential - they now sit at the intersection of monetary policy, regulatory enforcement and financial infrastructure. Their most important function is no longer price stability but control: control over access, compliance, behaviour and liquidity. Understanding stablecoins today requires shifting the lens from payments to power.

Historically, monetary systems have evolved through adoption b…