LONDON, Sept 10 (Reuters) - An increasingly anxious debate about the rise of dollar-pegged "stablecoins" has started to dwell on the resurgence of global dollar dominance rather than a "de-dollarization" long talked about. But its private sector nature adds considerable angst.

Dollar stablecoins, which are pegged to the U.S. dollar and offer instant settlement, are used by crypto traders to move funds between tokens. They were given a shot in the arm by July's "Genius Act" framework legislation in U.S. Congress, which requires stablecoins to be fully backed by liquid assets such as cash and Treasury bills.