In 48 hours, two legislative sessions have quietly ignited the currency war. Stablecoins are becoming a new battlefield for great power games.
On May 19, the US Senate passed the (GENIUS Act) with a high vote, officially incorporating stablecoins into the federal regulatory framework. Shortly after, on May 21, the Hong Kong Legislative Council passed the (Stablecoin Regulation Draft). In just two days, stablecoin legislation was implemented one after another, and the covert battle for the global financial landscape has quietly begun.
On the surface, this is just a routine action in digital currency regulation. In reality, stablecoins have quietly evolved into a reflection of real fiat currency in the virtual world, becoming a stronghold in a new round of international currency competition.
🔹 Stablecoins: Shadow fiat currencies in the digital age
Looking back at history, the establishment of dollar hegemony began with the Bretton Woods system—dollars were pegged to gold, and other currencies were pegged to the dollar; even after the dollar decoupled from gold, the United States still firmly held global monetary discourse through strong consumption capacity, the binding of petrodollars, and the circulation of US Treasury bonds.
In the virtual world, constructing a valuable digital economy system also relies on 'currency' that is pegged to real assets. Stablecoins serve as a bridge—connecting the blockchain world with the traditional financial system. Stablecoins, pegged to fiat currencies like the US dollar and Hong Kong dollar, possess the three major monetary functions of value storage, transaction medium, and unit of account, avoiding the violent fluctuations characteristic of Bitcoin.
However, stablecoins are not without risk. Their core value relies on the authenticity and transparency of reserve assets. The fiat currency to which the reserve assets are pegged effectively determines who can control monetary hegemony in the digital world.
🔹 Behind the legislation: The self-rescue and reshaping of dollar hegemony
The United States took the lead, which is no coincidence. The (GENIUS Act) stipulates that stablecoins must be backed by 100% cash reserves, demand deposits, or short-term US Treasury bonds. In other words, the US intends to continue locking global funds within the US Treasury bond system through stablecoins.
In the context of frequent setbacks to US dollar credit and the scale of US Treasury bonds reaching 36 trillion dollars, the US urgently needs new channels for capital inflow. Stablecoins are their chosen 'shadow means': through this emerging payment tool, global funds are directed toward the US Treasury bond market, quietly reinforcing the underlying structure of dollar hegemony.
Analyst Larry McDonald warned that if interest rates remain high, by 2026, the US could incur interest expenses of 1.3 trillion dollars, exceeding the defense budget. The pressure of the fiscal deficit is increasing day by day, and stablecoins are becoming a new pivot to alleviate this pressure.
At the same time, China is taking an alternative path through Hong Kong. The (Stablecoin Regulation Draft) does not impose strict restrictions on reserve assets, allowing for pegging to a single or multiple fiat currencies, and does not prohibit issuers from providing interest to stablecoin holders. This more flexible institutional design leaves room for innovation and is expected to occupy a favorable position in the global stablecoin competition.
🔹 Payment giants entering the fray, competing for global payment gateways
The stablecoin race is not just a national-level competition; global tech giants have also quietly entered the game.
Mastercard announced support for stablecoin consumption and settlement, and PayPal is fully promoting its stablecoin PYUSD. Domestic internet giants are also accelerating their layout: JD's stablecoin has entered the second phase of sandbox testing, covering scenarios such as cross-border payments, investment transactions, and retail payments. Ant Group is exploring new paths for stablecoins to be linked with real assets through the new energy RWA project, supporting cross-border financing implementation.
It is foreseeable that whoever can seize the payment gateway in the Web3 era will hold the discourse power of the digital economy era.
🔹 The vanguard of currency reconstruction
Behind the US dollar stablecoin is a deep binding to US Treasury bonds; the Hong Kong dollar stablecoin may become a booster for the internationalization of the Renminbi. A currency war without gunpowder has already begun.
When 36 trillion US dollars flow into the blockchain through USDT, and when the Hong Kong dollar stablecoin leverages cross-border settlements, the fate of personal wealth has long been embedded in the underlying logic of national games. The future financial order may be hidden in every line of code in the JD stablecoin testing scenario or may lie in every US Treasury bond in the USDC reserve assets.
This is not just a technological competition; it is also a reshuffling of financial power. Stablecoins are becoming the new Bretton Woods system of the digital age. And we are witnessing the starting point of this historic transformation.
🔹 How to stand firm in this changing situation?
In the face of the reshaping of the global currency landscape, individual investors need forward-looking insights and precise data analysis. To keep abreast of stablecoin legislative progress, regulatory trends, and market dynamics, Mlion.ai, as an AI-driven crypto investment research assistant, can provide real-time policy tracking, on-chain capital flow monitoring, and intelligent market report generation, helping you quickly identify potential opportunities amid information overload and avoid being swept away by dramatic changes.
The future digital economy world belongs to those who can sense opportunities and control data.
The above content is for information sharing only and does not constitute any investment advice! Investment involves risks, and caution is required when entering the market!
