Megan Greene, a policymaker at the Bank of England, expressed concerns about the future of stablecoins, suggesting they may lose popularity in favor of tokenized deposits over the next five years. Speaking at a conference in Croatia, she noted that while there is a market for stablecoins and central bank digital currencies, digital deposits could ultimately prevail as banks recognize their potential to retain traditional deposits. In contrast, Isabel Schnabel, a board member of the European Central Bank, warned that dollar-pegged stablecoins could significantly impact financial markets and further entrench the U.S. dollar's dominance. She pointed out that nearly all stablecoins are dollar-denominated, which could limit the euro's role in international finance. Emerging markets show a notable preference for dollar stablecoins, with 36% of Binance users in these regions holding substantial amounts in stablecoins. This trend raises questions about the future of monetary policy in countries with less trust in their currencies, as the growing use of stablecoins could lead to increased dollarization.