At noon on August 14, Bitcoin continued to fluctuate in the range of $29,380, and bulls were still unable to firmly cross the key resistance of $30,000. Fed Now, the Federal Reserve's instant payment system known as the "digital dollar", is rumored to have been connected to USDC U.S. dollar stable currency payment, which means that there is no exclusion between the two. The Wall Street Journal also published an opinion article calling on the U.S. government to support U.S. dollar stablecoins, believing that this can strengthen the international status of the U.S. dollar. Four states in the United States have approved Musk's X payment license, and the market outlook is expected to integrate cryptocurrency payments.

“Digital dollar” system integrates USDT payment

According to news forwarded by Santiment from Generation Infinity, FedNow, the Federal Reserve’s instant payment system, has added Hedera-supported micropayment platform Dropp to its service provider list, and Dropp supports micropayments in HBAR, US dollars, and USDC.

The Wall Street Journal mentioned in a commentary that stablecoins are blockchain-based assets backed by bank deposits and treasury bonds and are at the heart of the dollar-based revolution that developing countries are experiencing. Their prices should remain stable, usually 1 to 1 against USD fiat. Think of them as digital versions of prepaid cards, with the potential to become an important tool of American soft power in a world where the role of the dollar is being questioned.

Stablecoins are more than just a more efficient means of electronic payments. Some economists and policymakers worry about "de-dollarization," in which the U.S. dollar is displaced as the world's reserve currency, and that stablecoins could bolster the postwar arrangement, in which the U.S. dollar's dominance helped boost global trade and global poverty. of reduction. But it’s important to note that this can only happen if Congress implements a robust and stable regulatory framework.

The report emphasized: “Any instrument that might enhance the status of the U.S. dollar should be considered. Over the past few generations, the U.S. dollar’s ​​share of foreign exchange reserves held by foreign central banks has declined. In 2000, the U.S. dollar accounted for almost 73% of the world’s central bank foreign exchange reserves. %, compared with about 59% now. Although much international trade and a large number of commodity transactions are still settled in dollars, this year large countries including Brazil and Argentina signed bilateral agreements with China to use the yuan and their local currencies. currency for trade settlement.”

U.S. President Biden's policies have not enhanced global confidence in the U.S. dollar. After the geopolitical conflict between Russia and Ukraine, he froze the U.S. dollar assets of the Russian Central Bank. Although understandable from a political perspective, it still shocked investors and the central bank. Bankers, for the first time, are realizing that the dollar may not be as safe as it once was.

A non-dollarized world would be detrimental to the United States, as the dollar’s ​​reserve currency status lowers U.S. borrowing costs, which is crucial in an era when government borrowing and spending are at record highs and still climbing. Reserve status also insulates the U.S. government, banks, and the public from foreign exchange risk. All else being equal, reserve status also allows U.S. consumers to purchase foreign goods more cheaply because foreign producers would rather own dollars than other currencies.

Faced with the bleak prospect of storing their wages in local currency in local bank accounts, more citizens in high-inflation countries are choosing to use U.S. dollar-based stablecoins as comprehensive savings accounts. Dozens of startups offer stablecoin savings and payment options in Latin America and Africa, often in countries where leaders have publicly and visibly abandoned the U.S. dollar.

USD-backed stablecoins have market capitalizations in the hundreds of billions of dollars and support trading volumes that far exceed that amount. In these countries, these products are attractive to ordinary people because they do not need to open an account in a local bank, only an Internet connection. Additionally, many stablecoins pay interest and have no minimum balance fees and low or no transaction fees. Most importantly, they insulate people from the authoritarian monetary policies of developing countries, allowing them to store the value of their hard work in relatively stable dollars.

The Wall Street Journal concluded: “When the United States attempts to engage with other governments but fails, stablecoins can directly communicate U.S. monetary policy to residents of other countries. If stablecoins flourish, citizens of other countries will increase their interest in The demand for dollars, which is independent of, and perhaps even contrary to, the political decisions of their governments. But for stablecoins to succeed, U.S. politicians need to recognize that re-dollarizing the global economy is important.”

4 US states approve Musk X payment license

After Musk changed the name of Twitter to In the early hours of Sunday morning, following New Hampshire, Michigan, and Missouri, Georgia also approved X’s application for a money transfer service provider license (Money Transmitter License), laying the groundwork for X to expand payment and other financial services. foundation.

It is reported that the requirements for money transfer service provider licenses and the privileges granted by the licenses vary from state to state in the United States, but these licenses generally allow companies to send, receive and transfer funds nationally and internationally for customers, and also allow foreign exchange exchanges, such as Exchange foreign currencies for U.S. dollars, and issue prepaid cards.

In fact, Musk once acquired X at the end of October 2022, and said that the acquisition of Sexual function, similar to China’s WeChat, he also mentioned that the Twitter acquisition may accelerate Plan X by 3 to 5 years.

Now, X has service provider licenses in four states in the United States, which also makes X's plan to integrate global payment systems an important step forward.

Musk has long been known as the "Father of Dogecoin". In November 2022, he hinted at the possibility of introducing Dogecoin into Twitter payments. Although it has not yet been realized, it is not necessarily possible to obtain a currency transfer service provider license. It means bringing cryptocurrencies to X, but for crypto-asset advocates, there is still hope for X’s integration with cryptocurrencies.

Linda Yaccarino, the newly appointed CEO of Twitter, is no stranger to the field of digital assets. She is a champion of open source code and digital transparency. Recently, she also mentioned the vision of payments in the rebranding and transformation of Twitter X. "X is the future state of infinite interaction. It will build a global market for ideas, goods, services and opportunities centered on audio, video, messaging, payment and banking. With the support of artificial intelligence (AI), X will connect everyone in ways we are beginning to imagine."