Countries join stablecoin race to counter US dollar power
Nations are developing their own stablecoins as the US strengthens dollar dominance through widespread issuance of USD-pegged tokens.
The GENIUS Act in the United States has given stablecoin issuers a clear legal framework, boosting the role of dollar-pegged tokens in the global economy. Their widespread use has strengthened demand for US dollars and Treasury bills, solidifying American financial dominance.
Other nations are now working on stablecoin projects to protect local currencies. China is developing a yuan-pegged stablecoin aimed at international trade, following the recent adoption of Hong Kong’s Stablecoins Bill.
Japan is also preparing to launch a yen-pegged token backed by government bills later this year, with Monex Group leading the initiative.
The European Union has accelerated its plans for a digital € in response to the rise of USD-backed stablecoins. Reports suggest the project could be launched on Ethereum or Solana, a move that has sparked criticism from the crypto community over privacy and data control.
Despite several euro-pegged tokens already in circulation, their market share remains negligible compared to dollar-backed stablecoins.
Stablecoins are increasingly seen as tools for remittances and savings and for strategic influence in the global financial system. Other countries may struggle to rival USD-pegged coins, but the race to launch national stablecoins is underway.
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