The GENIUS Act is poised to transform 99% of the $3 trillion stablecoin market into a mechanism reinforcing U.S. dollar dominance, according to Gary Liu, co-founder of Terminal 3. This development could limit opportunities for countries to develop alternative monetary systems. Liu Xiaochun, an economics professor at Shanghai Jiao Tong University, criticized the U.S. for allowing private stablecoins while blocking CBDCs, suggesting this favors crypto industry interests over monetary innovation.
Stablecoins are increasingly used in countries like Turkey, Nigeria, and Argentina to hedge against local currency depreciation, with the global cross-border remittance market nearing $1 trillion. Meanwhile, Hong Kong's linked exchange rate system ensures its stablecoins remain tied to the U.S. dollar, despite local licensing efforts by major financial institutions.
GENIUS Act Could Cement U.S. Dollar Dominance via Stablecoins
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