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It certainly can. But it's not just democracy; central banking and fiat currencies can weaken autocracies, also. What is needed is a credible commitment to a stable money supply. The US federal reserve is, by the standards of central banks, not too bad. But in 2009-2011, and then again 2020-2022, the US Fed lost all credibility. One possible compromise is a dollar denominated stablecoin. But I don't think politicians, either democratic or authoritarian, are going to relinquish the magic money pump.
I'm glad you mentioned stablecoins. I'm curious what you think of them.
As far as I can see they are just a slightly less regulated version of traditional banking (their big advantage being that they are easier to send around).
I know that other people think that the US is going to try to engineer new demand for US debt via stablecoin reserve requirements. Do you put any stock in this?
Do you think central banking weakens the effectiveness of democracy?