US Unveils 'Stablecoin Dominance Strategy'...Will it Reclaim Dollar Hegemony?

▲ Tether (USDT), PUSD, Stablecoin/AI Generated Image

The United States' strategy to reshape dollar hegemony through stablecoins is taking shape, intensifying the global competition for leadership in the financial order.

According to crypto media outlet NewsBTC on April 16 (local time), the Bitcoin Policy Institute (BPI) presented five policy strategies to establish 'stablecoin hegemony' for the U.S. This strategy focuses on expanding dollar influence and reorganizing the structure of overseas dollar markets based on the GENIUS Act.

The core logic is clear: utilizing regulated stablecoins can draw the dollar credit structures created by overseas financial institutions back into the U.S. BPI explained, "The value of the dollar moves globally, but the reserve assets remain within the U.S.," emphasizing that this can reduce systemic risk and strengthen dollar control.

The first policy pillar is strengthening the GENIUS Act. This involves requiring stablecoin issuers to maintain 100% reserve assets such as Treasury bonds, repos, and deposits, and establishing a Fed liquidity access system to create a more attractive structure than existing Eurodollars.

The second is the transformation of the international payment structure. The strategy aims to use stablecoins as a means of trade settlement instead of traditional Eurodollars, thereby bringing demand for U.S. Treasury bonds back domestically and weakening the structure of overseas credit expansion.

The third and fourth points are ensuring competitiveness and controlling risk. This includes creating fee and reward structures to enable stablecoins to compete with interest-bearing assets, and in the DeFi sector, introducing smart contract-level regulations to prevent unlimited credit creation.

Finally, BPI proposed a dissemination strategy that respects foreign currency sovereignty. The idea is to use stablecoins as a tool for economic development rather than a means of coercion, thereby increasing global adoption.

Meanwhile, this proposal stems from a sense of crisis that the U.S. is losing its lead in dollar payment infrastructure amid the spread of China's digital yuan and Europe's MiCA framework. As the strategy to control the 'path where money moves' itself through stablecoins intensifies, the global currency hegemony competition is entering a new phase.

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