Stablecoins

Renowned economist and gold advocate Peter Schiff has challenged the popular belief that stablecoins support demand for U.S. Treasury bonds. On the contrary, he argues that stablecoins may disrupt financial balance, crowd out traditional lending, and increase long-term interest rates, including mortgage rates.

No Added Demand, Just Liquidity Redirection
In his latest post on X (formerly Twitter), Schiff claimed that shifting capital from savings and money market accounts into stablecoins does not boost demand for U.S. Treasuries. Instead, it simply redirects existing liquidity that would otherwise flow into money market funds—funds that directly buy government bonds.
He further noted that stablecoin issuers are the ones purchasing Treasuries, not the users, meaning the interest income is lost to the end users and captured by the issuing companies instead.

Long-Term Effects: Higher Rates and Lower Credit Availability
Schiff issued another warning: stablecoin issuers typically buy short-term Treasuries, which could lead to lower demand for long-term bonds—a key factor in determining mortgage and corporate interest rates.
According to Schiff, declining demand for long-term Treasuries may result in higher yields, which in turn could raise borrowing costs for homeowners and businesses. He also pointed out that capital locked into stablecoins can no longer be used for private lending, depriving the real economy of productive investment opportunities.
“Money flowing into stablecoins to purchase short-term government bonds cannot be lent to private borrowers,” Schiff cautioned.

Clash with BlackRock: Stability vs. Growth
Schiff’s stance sharply contrasts with that of BlackRock, the world’s largest asset manager, which recently described stablecoins as one of the megatrends shaping the future of global returns.
While many fintech firms and institutions view stablecoins as a liquid and transparent way to gain exposure to the U.S. dollar, Schiff is among those who see their rise as a potential threat to the stability of traditional financial systems.

Regulation Under Scrutiny
The growing role of stablecoins has caught the attention of regulators and lawmakers. The debate intensified after U.S. President Donald Trump signed the GENIUS Act, the nation’s first major crypto legislation.
Schiff’s remarks come at a time when stablecoin usage is booming—but so are concerns about their broader economic impact, including inflation, capital access, and systemic risk.

#PeterSchiff , #Stablecoins , #DigitalDollars , #crypto , #Regulation

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

July 29, 2025
📍 Fortitude Financials
In a market-moving prediction, BlackRock the world’s largest asset manager, has stated that it expects the U.S. Federal Reserve will hold interest rates steady during tomorrow’s policy meeting. The central bank is anticipated to keep rates at 4.25%–4.50%, resisting mounting pressure from investors who are hoping for monetary easing.
But what does this mean for the crypto market, which has been eagerly watching every Fed move?
📉 No Rate Cut = No Immediate Boost for Bitcoin
Crypto investors have long seen interest rate cuts as a bullish signal. Lower rates reduce the appeal of traditional fixed-income assets, pushing capital into risk-on investments like Bitcoin and Ethereum.
However, with rates expected to remain unchanged, that bullish momentum could stall, at least in the short term. Bitcoin may consolidate or even retrace, as institutional investors delay large inflows and speculative traders stay cautious.
💵 Dollar Strength = Pressure on Crypto
Keeping rates high helps the U.S. dollar remain strong. That can limit demand for crypto, which is often used as a hedge against dollar depreciation. A strong dollar typically leads to outflows from riskier markets like crypto, particularly when bond yields remain attractive.
🏦 BlackRock: Strategically Bullish, But Timing Matters
Interestingly, BlackRock itself has been vocal in pushing for rate cuts. Senior leaders including Rick Rieder and Larry Fink argue that prolonged high rates may slow economic growth and stall innovation—particularly in emerging sectors like digital assets.
Still, the asset manager remains structurally bullish on crypto. Its emphasis on tokenized funds, stablecoins, and blockchain-backed ETFs shows long-term commitment, even if rate-sensitive inflows are delayed.
🪙 Stablecoins May Outperform
While rate-sensitive assets like Bitcoin may pause, stablecoins could shine. Backed by regulatory progress—such as the recent Genius Act—stablecoins like USDC and USDT are gaining credibility and adoption. BlackRock’s stance suggests that stablecoins are “here to stay”, with tokenization expected to dominate the next phase of crypto innovation.
This positions stablecoins as a safe harbor for crypto liquidity, especially during macroeconomic uncertainty.
📊 Summary: Crypto at a Crossroads
Market Driver Impact on Crypto
No Fed Rate Cut = Limits bullish breakout potentialDollar Remains Strong = Dampens Bitcoin demandInstitutional Caution = Slower inflows from big playersStablecoins Rising May capture short-term dominance
🔍 Final Thoughts
The Fed’s decision to keep rates steady might cool immediate excitement in the crypto market—but it doesn’t kill the bigger picture. BlackRock’s long-game investment in digital assets and tokenized products signals a deeper shift is underway.
Crypto isn’t out of steam—it’s just waiting for the next macro spark. Until then, stablecoins and infrastructure tokens may take the spotlight while Bitcoin and Ethereum regroup.
Stay tuned for our post-FOMC analysis tomorrow. Follow Fortitude Financials for real-time crypto updates and macro market breakdowns.

📌 #CryptoNews #bitcoin #blackRock #FederalReserve #Stablecoins #FortitudeFinancials

The working group at the White House released a brief report outlining a strategy to create a 'golden age' for cryptocurrencies. The document contains recommendations for Congress and regulatory bodies, but it lacks mention of the previously proposed strategic Bitcoin reserve.

Visa, one of the world’s largest payment networks, is highlighting the slow adoption of stablecoins — cryptocurrencies pegged to the U.S. dollar — and is urging for a clearer regulatory framework in the U.S. While Visa sees this technology as a promising future tool, the transaction volume remains relatively small.

🟦 Visa Bets on Stablecoins, but Progress Is Slow

In the second fiscal quarter of 2025, Visa reported revenue of $10.17 billion, a 14% increase year-over-year. However, settlement volume involving stablecoins totaled only $200 million. CEO Ryan McInerney commented, “It’s a milestone, but still just a drop in the bucket compared to our overall volume.”
McInerney emphasized that without clear rules, stablecoin adoption won’t grow. He noted that only 10–20% of current stablecoin usage is related to actual payments — the rest occurs on crypto exchanges. That’s why Visa is investing in infrastructure, including a stake in U.K.-based firm BVNK, and is partnering with Bridge (a Stripe unit) to offer stablecoin services in Latin America.

🟦 Technology of the Future, but Regulation Is Key

Visa is currently testing the use of stablecoins for real-time cross-border payments via its Visa Direct platform. The company is also developing programmable finance tools through its Visa Tokenized Asset Platform, aiming to help banks issue and utilize stablecoins for innovative financial products.
This development comes as the U.S. takes a major step in crypto regulation — President Trump recently signed the GENIUS Act, providing the first comprehensive regulatory framework for the crypto sector.
However, McInerney stressed that global operators like Visa must also monitor international developments. “We’re hopeful for clearer, more pragmatic regulations not just in the U.S., but around the world,” he stated.
Experts believe that the use of stablecoins could expand significantly within the next year — with more than 50% of transactions expected to be for payments or salaries rather than just trading.

#Stablecoins , #CryptoPayments , #DigitalAssets , #CryptoAdoption , #CryptoNews

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The Trump White House has finally released its long-awaited report on cryptocurrency regulation, marking a significant move in the ever-evolving digital asset landscape. This thorough document outlines policy recommendations aimed at establishing a solid framework for regulating crypto in the United States, emphasizing everything from market structure to taxation.
Establishing a Clear Digital Asset Taxonomy

One of the key highlights of the report is the establishment of a comprehensive “taxonomy” for digital assets. The Working Group on Digital Assets focuses on delineating which cryptocurrencies fall under the category of securities versus those classified as commodities. Clear definitions will provide much-needed clarity in a space often fraught with confusion and differing interpretations.
Shared Oversight: CFTC and SEC Collaboration

The report recommends a collaborative approach to oversight between two critical regulatory bodies: the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). It suggests that the CFTC should oversee spot crypto markets while the SEC manages securities. This partnership is expected to enhance regulatory clarity and promote the United States as a global leader in digital assets.
Easing Banking Regulations for Crypto Custody

The report emphasizes the need for reform in banking regulations to foster innovation in the crypto space. Key proposals include giving banks the authority to custody cryptocurrencies and offer related services. Additionally, the working group urges regulators to streamline the charter acquisition process, making it more transparent and accessible for financial institutions looking to engage with digital assets.

Protecting the Dollar: Embracing Stablecoins

Central to the report is the promotion of stablecoins as a means to sustain the US dollar's dominance in the global economy. Notably, the working group advocates for the passage of the CBDC Anti-Surveillance State Act, effectively calling for a prohibition on the development of a central bank digital currency (CBDC) in the United States. Interestingly, while arguing for stablecoins, the authors acknowledge their similarities to CBDCs, particularly in terms of the capacity for law enforcement to freeze and seize assets.
Crafting Customized Tax Policies for Crypto

Recognizing the unique nature of cryptocurrencies, the report calls for tailored tax policies to address their distinct characteristics, including staking and yield farming. It proposes that Congress enact legislation defining digital assets as a new category subject to modified tax regulations akin to those governing securities and commodities. This approach aims to clarify the tax landscape for crypto investors, making it easier for them to navigate their obligations.
Conclusion: A Path to Innovation and Investor Protection

As expressed by SEC Chair Paul Atkins, the report endorses the notion that a rational regulatory framework for digital assets can catalyze American innovation while simultaneously protecting investors from fraud. By addressing jurisdictional oversight, banking regulations, stablecoins, and tax policies, the Trump administration’s Working Group on Digital Assets reinforces its commitment to making the US a powerhouse in the digital asset space.

$USDC
$USDT

#Binance #CryptoRegulation #Stablecoins #SEC #DigitalAssets

Stablecoins continue their unstoppable rise, consolidating as a fundamental tool in the crypto ecosystem and beyond. This morning, a significant increase in transaction volume and their utility in global payments is highlighted, especially in emerging markets and for cross-border remittances. Their linkage to traditional assets, such as the US dollar, provides them with stability, making them attractive for daily commerce and as a bridge between traditional finance and the Web3 economy. Innovation in the design of new stablecoins and their integration into traditional payment platforms is accelerating their mass adoption.

Ripple’s Chief Technology Officer, David Schwartz, has explained why XRP should continue to be the bridge currency of choice for international payments, even in an era dominated by stablecoins like RLUSD. According to him, XRP offers a unique combination of neutrality, high liquidity, and technological readiness that other digital assets have yet to match.

🔹 Why XRP Still Leads the Way
In responses shared on X, Schwartz addressed questions about XRP’s future in a world increasingly leaning toward stablecoins. He emphasized that in a global financial system divided by numerous fiat currencies, no single stablecoin can achieve total dominance. That’s where XRP comes in—as a “neutral bridge” ideally suited for cross-border payments, asset tokenization, and credit markets.
While volatility is often cited as a drawback, Schwartz noted that XRP is held only briefly during transactions, limiting exposure to price swings.

🔹 XRP and RLUSD as the Core of Future Infrastructure
Schwartz also highlighted RLUSD’s growing importance and suggested that XRP and RLUSD could become foundational to the new financial infrastructure—especially after the passing of the GENIUS Act, which aims to provide legal clarity for stablecoins and crypto in the U.S.
He addressed concerns over why anyone would hold XRP if it’s just a bridge asset. Liquidity providers must hold XRP to facilitate trades, and institutions unsure of which asset they’ll need next are more likely to hold XRP due to its versatility and liquidity.

🔹 XRPL Adoption: Built for Global Integration
Schwartz spoke on the broader topic of XRPL (XRP Ledger) adoption and the challenges facing Ripple’s decentralized exchange (DEX). Regulatory uncertainty and concerns over bad actors in decentralized systems have slowed adoption, but Schwartz believes new features such as permission layers will help resolve these issues.
He argued that XRPL’s openness, scalability, and interoperability make it appealing to institutions like BlackRock—who may opt for XRPL over proprietary solutions, much like USDC operates on multiple blockchain networks.

🔹 Global and Borderless by Design
Finally, Schwartz pointed out that XRPL does not restrict participation based on nationality—an advantage in a geopolitically fragmented world. This neutrality is crucial for global adoption.
In his view, XRP continues to play an essential role as a bridge between traditional currencies, tokenized assets, and the future of finance. Alongside RLUSD, it could form the backbone of a new digital economy.

#xrp , #Ripple , #CryptoCommunity , #RLUSD , #Stablecoins

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“