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King-Making Via Stablecoins

Are stablecoins how the US Empire survives another 100 years? Likely. In Fifth Epoch Prophecies, I predicted that a country would adopt a USD-denominated stablecoin as legal tender and that the market cap of stablecoins would exceed $3.75 trillion1. While stablecoins have emerged as a major winner in the sea of loser crypto use cases, one cannot help but notice that this is nothing more than the next generation of monetary warfare.

Stablecoin. (noun) \ˈstā-bəl-ˌkȯin:

A type of digital currency or cryptocurrency designed to maintain a stable market price, not subject to the high volatility typically associated with cryptocurrencies.

A cryptocurrency that is typically pegged to a stable asset, such as a fiat currency (like the US dollar), commodities (like gold), or other cryptocurrencies, with the aim of stabilizing its value.

A digital token used in the cryptocurrency market that combines the instant processing and privacy of cryptocurrencies with the stable value of traditional currencies, often used to mitigate volatility and facilitate trading and transactions in decentralized finance (DeFi) applications.

More on stables -> The Horses In The Stables

Stablecoins are synthetic US Dollars that enhance the utility of the world’s most liquid currency. They allow dollars to creep into corners of the world where the US government imposes sanctions and offer people in countries with weaker central banks the opportunity to access the Dollar. For people who don’t want to hold their own devalued fiat currency, stablecoins present a more stable alternative, one where you hold a less shitty fiat currency. While inflation in America is a concern, it’s still minor compared to the severe devaluation seen in other countries’ currencies.

The superpower of stablecoins lies in its ability to bring demand for dollars to places dollars could never go. In a world where demand for treasuries is beginning to decline, stablecoins have the potential to fill the shrinking gap. Could stablecoins propel demand for US debt to new heights? That’s the big question, and some prominent figures are starting to signal such.

Today we face mounting concerns as competitive nations are beginning to question the legitimacy of the dollar. This meme is catching on and it is causing concern for our nations number one export, US Treasuries (UST). What will American leaders do? There is no end in sight for inflation, taxes, and debt creation to keep this engine running, so what can be done to hedge the risk of declining demand for UST from global superpowers?

33 Days Ago

Just last month, former Speaker of the House Paul Ryan was interviewed by Bloomberg and stated that stablecoins could be an immediate fix for the declining US Treasury (UST) market. Watch the clip above and tell me how insane this is. Former Speaker of the House Paul Ryan asked about what the US can do to increase demand for UST and the first thing out of his mouth is “pass stablecoin legislation”. Can you believe this is happening? The year is 2024 and Paul Ryan, President Trump, and many others are regularly leaning into crypto as a solution.

Last Friday

Published June 14, 2024 – HTML

Paul Ryan recently stated, “Promoting dollar-backed stablecoins would mean a well-trodden path and offer clear near-term benefits, including an immediate increase in demand for U.S. debt, reducing the risk of failed debt auctions and financial crisis.” Ryan’s statement suggests that international retail demand for stablecoins can replace the demand from major buyers like China. This is a bold statement considering China’s significant holdings, but it’s not impossible to shift that demand to different parts of the world. While China currently holds $797 billion in U.S. Debt, accounting for around 9.9% of total debt held by foreign countries, stablecoins could tap into new markets to fill this gap.

SOURCE

Stablecoins can cross borders via the internet, meaning new demand for dollars can come from places previously inaccessible, especially emerging markets and BRICS nations. If the entire population of South America (approximately 442 million people) were to demand stablecoins, each person would need to hold around $1,800 to match China’s $797 billion in US debt holdings. This may seem significant, but as stablecoins facilitate dollarization, this demand becomes realistic, especially with the US fintech sector expanding its influence in these regions.

Stablecoins have the potential to reshape global demand for US debt and stabilize economies by providing a reliable currency option in unstable regions. As their adoption grows, stablecoins will profoundly impact the global financial system and US Dollar dominance.

As the world grapples with economic instability and fluctuating demand for traditional financial instruments, stablecoins offer a solution that prolongs the US Empire. By providing a “more stable”, digital alternative to shittier local fiat currencies, stablecoins have the potential to stabilize economies and create new demand for US debt (this is called dollarization). With influential voices like Paul Ryan advocating for their adoption, stablecoins might soon play a critical role in global finance, bridging gaps and bringing financial stability to regions previously out of reach. The future of stablecoins is not just about financial innovation—it’s about reshaping the economic landscape on a global scale.

President Trump is hitting the trail with a fresh bag of talking points shitting on CBDC and he’s a new bitcoin enjoooyer and more regulation will come to stables, this is part of his platform. The USG is going to pump stables bags harder than anything you’ve ever seen.

Some people believe that all dollars fall under jurisdiction of the USG, which makes sense, but when stables are buyers of debt and allow whole nations to dollarize, the USG isn’t going to stop that. Why would you bite the hand that feeds? The current anti-CBDC gimmick is nothing more than an act because Stablecoins are nothing more than a CBDC in disguise. Synthetic Dollars are the new Dollars and the US Government is in the process of King-making.


FOOTNOTES
  1. This is definitely a wild guess for market cap. I made the guess on a midsize nation declaring stables as legal tender and just multiplying current market cap by several times as there is no sign of demand slowing, especially with bullish sentiment from the likes of Paul Ryan. ↩︎