When senior central bank officials refer to blockchain as a 'national weapon', under the calm surface of the global cryptocurrency market, undercurrents have long been surging. Pan Gongsheng's statement is by no means a simple technological outlook, but an 'eviction order' directed at private stablecoins such as USDT and USDC. A financial revolution led by the national team has already begun.
The national team's dimensionality reduction strike: The dual shock of traditional finance and stablecoins. President Pan mentioned that 'blockchain promotes central bank digital currency,' which actually contains three strategic implications.
Firstly, distributed ledger technology is like a sharp blade, targeting the foundation of dollar hegemony - the cross-border settlement system. Once adopted universally by central banks around the world, the long-standing monopoly position of the dollar in cross-border payments will face collapse.
Secondly, the encirclement of private stablecoins has already begun. The comprehensive implementation of central bank digital currencies (CBDCs) in various countries means that USDT, a 'private IOU' lacking national credit endorsement, will gradually lose its space for survival. Under the wave of digitalization of sovereign currencies, the credit risk of these private stablecoins will be infinitely magnified. Even more noteworthy is the rapid advancement of China's digital yuan. Currently, the digital yuan pilot has covered 26 provinces and cities, with full salary payments in digital yuan for civil servants in Suzhou, and countries such as Thailand and the UAE adopting Chinese technology to build cross-border payment networks. This dual advantage of technology and market has positioned China in a leading position in this financial revolution.
The crisis of private stablecoins: From the risk of collapse to regulatory encirclement. The crisis of USDT had long been in the making. In 2023, Tether was exposed to a reserve gap of up to 19 billion USD. Although it temporarily survived by issuing more tokens, the hidden dangers have already been buried. Now, with the entry of central banks, the survival environment for private stablecoins is becoming increasingly severe. BlackRock swiftly applied for the IBIT blockchain government bond stablecoin, relying on US government bonds as a solid endorsement, directly targeting the core flaw of USDT. Meanwhile, the US SEC announced that it would conduct strict inspections of all algorithmic stablecoins in July, tightening the regulatory net. This series of actions has released a clear signal: the national team is fully committed to clearing private stablecoins and reshaping the financial order.
The survival strategy for retail investors: Three key strategies. In this financial transformation, the choices of retail investors will determine the retention of wealth. Firstly, it is crucial to decisively withdraw from high-risk private stablecoins. If over 90% of assets are in USDT, it is recommended to transfer at least 50% to offshore RMB CBDC. Currently, Macau has opened a digital yuan exchange deposit channel, providing a safe transfer path for investors. Secondly, seize the development opportunities of compliant stablecoins. After the launch of BlackRock's IBIT, it is expected to provide an annualized 5% return on government bonds, with gas-free transfers, significantly better than the traditional USDT with over 3% annual transfer loss. Finally, proactively lay out the central bank digital currency ecosystem. Pay attention to enterprises participating in the digital yuan cross-border payment pilot, such as China Eastern Airlines and Haier, which have already initiated blockchain transformations and are expected to gain an advantage in the future digital economy.
The future is here: The tide of wealth transfer. As China accelerates the promotion of the digital yuan in international trade, from Brazilian soybeans to Middle Eastern oil and Russian natural gas, an increasing number of bulk commodity transactions will be settled in digital yuan. This trend will directly lead to the market value of USDT plummeting from 110 billion to 30 billion, while exchanges that have preemptively laid out CBDC settlements, such as OKX, are expected to see user numbers double. Investors holding digital yuan government bond stablecoins will enjoy a generous annualized return of 8%. This blockchain revolution led by the national team is both an opportunity and a challenge. By choosing the right track, investors may share in the wealth transfer wave; conversely, they may become victims of the era's transformation. Closely monitoring market dynamics and timely adjusting investment strategies will ensure survival in this financial revolution.
