Too many people underestimate the power of the stablecoin bill. To me, this is simply the genius version 3.0 of US dollar hegemony—

$6.6 trillion in deposits are at risk of being transferred to stablecoins, and for every $1 that flows from banks to stablecoins, it is expected to generate $0.9 of incremental demand for US Treasuries.

This bill has a necessity from conception to launch, and you can find the answers in history—

1⃣ Dollar 1.0: Gold-backed Dollar Hegemony

The US established its 1.0 hegemonic position with gold reserves and post-World War II reconstruction funds. Soon after, the Vietnam War fiscal deficits in the 60s and the hollowing out of American industry led to a continuous sell-off of the dollar, with France's de Gaulle directly shipping gold back on warships.

Until 1971, Nixon closed the gold standard, the Bretton Woods system collapsed, marking the end of the 1.0 era.

2⃣ Dollar 2.0: Petro-dollar Hegemony

After decoupling from gold, the dollar entered the era of fiat currency.

The hallmark was the signing of the US-Saudi agreement in the late 70s, requiring global oil trade to be settled in dollars, laying the groundwork for the petro-dollar system.

During this phase, dollar hegemony was not based on gold but on the dominance of global energy circulation, the credit of US Treasuries (the world's largest, deepest, and most liquid bond market), and the geopolitical security provided by the US military and NATO.

Until after the 2008 financial crisis, when the dollar began to be printed excessively, the world became increasingly reliant on the liquidity printed by the US. The US itself lost control of its debt, and the world failed to find a second alternative reserve asset.

3⃣ Dollar 3.0: On-chain Dollar Hegemony

During this period, the stablecoin bill was directly passed, becoming a new transmission mechanism for the dollar, placing dollars on-chain without needing to go through banks, SWIFT, or clearinghouses.

Even if a country imposes capital controls and seeks to de-dollarize, ordinary people can still bypass these restrictions and directly store and transfer value using USDT or USDC.

To summarize—

Dollar 1.0 → Physically backed by gold

Dollar 2.0 → Geopolitical energy-backed

Dollar 3.0 → On-chain liquidity-backed, essentially the digitization of the dollar + disintermediation expansion

This energy game is very interesting. Web3 believes we need to protect wealth sovereignty amidst excessive currency issuance, while hegemonic governments want to use Web3 to solidify their hegemony.

Now there are no common enemies. Now we only have common interests, and we need to bring more people into this system. Therefore, the rise is a common goal, and it is bound to happen!