Author: Mask, W3C DAO
A financial experiment born from the 36 trillion USD national debt crisis is attempting to transform the crypto world into a "bagholders" of US Treasury bonds, while the global monetary system is quietly being reshaped.
In the US Congress, a bill called the "Beautiful Act" is being vigorously advanced. The latest Deutsche Bank report characterizes it as the United States' "Pennsylvania Plan" to address massive debt - by mandating stablecoins to purchase US Treasury bonds and incorporating digital dollars into the national debt financing system.
This bill forms a policy combination with the 'GENIUS Act', which has already mandated that all USD stablecoins must be 100% backed by cash, US Treasury bonds, or bank deposits. This marks a fundamental shift in stablecoin regulation. The bill requires stablecoin issuers to maintain reserves at a 1:1 USD ratio or with highly liquid assets (such as short-term US Treasury bonds), prohibits algorithmic stablecoins, and establishes a dual-track federal and state regulatory framework. Its objectives are clear:
Alleviate US Treasury bond pressure: Mandate stablecoin reserve assets to invest in the US Treasury bond market. According to US Treasury predictions, global stablecoin market value will reach 2 trillion USD by 2028, with 1.6 trillion USD flowing into US Treasury bonds, providing a new financing channel for US fiscal deficits.
Consolidate US dollar hegemony: Currently, 95% of stablecoins are pegged to the US dollar. The bill creates a closed loop of "USD → stablecoin → global payment → US Treasury bond inflow", strengthening the "on-chain seigniorage" of the US dollar in the digital economy.
Promote rate cut expectations: The Deutsche Bank report indicates that the bill pressures the Federal Reserve to lower interest rates to reduce US Treasury bond financing costs while guiding the US dollar to weaken and enhance US export competitiveness.
US Treasury Bond Reservoir, Stablecoins Become Policy Tools
... [rest of the text continues]Third Layer: Loss of Monetary Policy Independence. Deutsche Bank report directly points out that the bill will "pressure the Federal Reserve to cut interest rates". The Trump administration indirectly obtains "money printing rights" through stablecoins, potentially undermining the Federal Reserve's independence - Powell has recently rejected political pressure, suggesting no hope for a July rate cut.
More troublingly, the U.S. debt-to-GDP ratio has exceeded 100%, and the credit risk of U.S. Treasury bonds is rising. If U.S. Treasury bond yields continue to invert or default expectations emerge, the hedging properties of stablecoins will be in grave danger.
New Global Chessboard: Blockchain Reconstruction of Economic Order
Facing U.S. actions, the world is forming three camps:
Regulatory Convergence Camp: Canadian banking regulators announced they are ready to regulate stablecoins, with a framework being developed. This echoes U.S. regulatory trends, forming a North American collaborative stance. Coinbase will launch U.S.-style perpetual contracts in July, settling funding rates with stablecoins.
Innovation Defense Camp: Hong Kong and Singapore show divergent regulatory paths. Hong Kong takes a cautious tightening approach, positioning stablecoins as "virtual bank alternatives"; Singapore implements a "stablecoin sandbox", allowing experimental issuance. This difference may trigger regulatory arbitrage, weakening Asia's overall competitiveness.
Alternative Solutions Camp: In high-inflation countries, people use stablecoins as "hedging assets", undermining local currency circulation and central bank monetary policy effectiveness. These countries may accelerate developing local stablecoins or multilateral digital currency bridge projects, but face severe trade challenges.
Moreover, the international system will undergo transformation: from unipolar to "hybrid architecture", with current reform proposals showing three paths:
Diversified Monetary Alliance (highest probability): U.S. dollar, Euro, and RMB form a tri-polar reserve currency, supplemented by regional settlement systems (like ASEAN multilateral currency swap).
Digital Currency Competition: 130 countries are developing central bank digital currencies (CBDC), with digital RMB already piloting cross-border trade, potentially reshaping payment efficiency but facing sovereign transfer challenges.
Extreme Fragmentation: If geopolitical conflicts escalate, a fragmented U.S. dollar, Euro, and BRICS currency camp may form, dramatically increasing global trade costs.
PayPal CEO Alex Chriss points out the key bottleneck: "From a consumer perspective, there's currently no real incentive driving stablecoin adoption". The company is launching a reward mechanism to solve the adoption challenge, while decentralized exchanges like XBIT solve trust issues through smart contracts.
Deutsche Bank report predicts that with the "Beautiful Bill" implemented, the Federal Reserve will be forced to cut rates, and the U.S. dollar will significantly weaken. By 2030, when stablecoins hold $1.2 trillion in U.S. Treasury bonds, the global financial system may have quietly undergone blockchain reconstruction - U.S. dollar hegemony embedded in code in every blockchain transaction, with risks dispersed through a decentralized network to every participant.
Technological innovation is never a neutral tool. When the U.S. dollar dons blockchain's cloak, the old order's game is playing out on a new battlefield!
