Hello friends

Today I want to share some big news about stablecoins. Many of you already know, stablecoins are digital tokens backed by real money like the U.S. dollar, Euro, Yen, or Yuan. They are very useful for sending money fast, cheap, and across borders.

Right now, most stablecoins in the world are linked to the U.S. dollar (USD). In fact, around 99% of all stablecoins are pegged to USD. Because of this, the U.S. dollar is getting stronger day by day.

Recently, the U.S. government introduced the GENIUS Act. Under this law, private companies can issue stablecoins if they are backed 1:1 with U.S. dollars or Treasury bills. This means every digital coin must be supported by real U.S. assets.

Why is this important?

People in many countries use USD stablecoins for savings and remittances.

This increases demand for U.S. dollars and Treasury bills.

As a result, the U.S. dollar becomes even stronger in global markets.

But this situation is not good for other countries. If everyone uses USD stablecoins, local currencies and banks can become weak. That is why other nations are now creating their own stablecoins.

U.S. Advantage

The United States is in the strongest position right now. Almost every stablecoin in the world is backed by U.S. dollars or U.S. Treasury bills. This means that whenever someone in Asia, Africa, or South America uses a stablecoin, it increases the demand for the dollar. In short, the U.S. is exporting its currency in a new digital form.

China

China doesn’t want USD stablecoins to dominate. It launched the digital yuan (CBDC) in 2021, but it was not very popular. Now, China is working on a yuan-pegged stablecoin to be used for international trade. This move could help protect the Chinese currency.

China knows that its economy depends heavily on exports. If all trade shifts to USD stablecoins, China could lose control over payments. That’s why they are pushing for a yuan stablecoin, especially for international trade. This move could help China balance America’s financial influence.

Japan

In Japan, a company called Monex Group is preparing to launch a yen-pegged stablecoin later this year. It will be backed by Japanese government bonds and used for business payments and cross-border transfers.
Japan wants to protect its financial system too. By launching a yen-backed stablecoin, it can make cross-border business payments faster and cheaper. Even though Japan doesn’t have strong social media platforms like the U.S. or China, it wants to stay in the race.

European Union

The EU is also rushing to release the digital euro. Recently, it was reported that the EU might launch it on public blockchains like Ethereum and Solana. However, many people are worried about privacy and control issues. At the moment, euro stablecoins are very small — less than 1% of the total market.
Europe is in a tough spot. The euro stablecoins are very small compared to USD stablecoins. The European Central Bank hopes that a digital euro will strengthen Europe’s financial independence. But if they launch it on public blockchains like Solana or Ethereum, people worry about privacy and too much government control.

The Global Impact

Stablecoins can make money transfers faster, cheaper, and borderless. But they also shift global power. Whoever controls the most popular stablecoin will control a big part of the world economy. Right now, America is winning, but China, Japan, and Europe don’t want to stay behind.

The Bigger Picture

The U.S. is making the dollar stronger with stablecoins.

China and Japan are entering the race with their own coins.

Europe is trying to catch up but faces many challenges.

Stablecoins are no longer just about crypto. They are becoming a global financial weapon. Whoever wins this race will have more power in the world.