Stablecoin: The Long-Term Future of the Global Financial System?

Stablecoins are emerging as a potential factor to modernize the financial system, especially in the long term, thanks to #GENIOUSAct – the stablecoin bill in the U.S. Senator Bill Hagerty noted that this is an opportunity to reform the U.S. financial system, which relies on technology from the 70s and 80s, now outdated. He emphasized that USD-pegged stablecoins will strengthen the dollar's position as the global reserve currency.

The bill requires each dollar #stablecoin to be 100% backed by cash or short-term government bonds, forcing issuers to buy Treasury bonds. This not only increases the demand for U.S. bonds, supporting national finance, but also creates a solid foundation for stablecoins. Citi Bank forecasts that by 2030, stablecoin issuers could become the largest holders of Treasury bonds in the world, marking a significant transformation.

With this potential, in the next 5-10 years, stablecoins could become the dominant payment instrument, facilitating fast, transparent, and low-cost cross-border transactions. As giants like Meta and Stripe have begun testing integration, stablecoins are not only DeFi assets but also a pillar of the digital economy, shaping the future of the global financial landscape.

Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating. #anhbacong