Bitcoin, stablecoins pegged to the US dollar and US dollar-pegged stablecoinsBTCShare the a “symbiotic” According to Sam Lyman of the Bitcoin Policy Institute, a Washington DC-based advocacy group for digital assets, both parties will benefit from increased adoption.
“Bitcoin is beneficial to the US system because the largest Bitcoin trading pair is BTC/USD,” USDt) or Tether (USDt).USDTLyman, a Cointelegraph reporter, said that stablecoin is backed up by short-term US Government debt and cash deposits. He continued:
“There is a symbiotic relationship between BTC and the dollar system because BTC is most frequently traded in dollars. So, I do see those things as being mutually reinforcing, which runs contrary to the narrative around BTC that it would actually undermine the dollar.”
Bitcoin and dollar pegged stablecoins have a similar structure, he said. relationship to the dollar and oil. In the petrodollar currency system that began in the 1970s, the price of international oil is set in dollars. As a result, the demand for dollar increases.
Lyman urged US Congress to keep developing stablecoin rules introduced by the GENIUS regulatory structure, while not deviating too much from its core principals. strengthen and protect US dollar hegemony Geopolitics is a competitive field.
Related: Stablecoins flip automated clearing house volume in February
China has stepped up its efforts to implement CBDC by clamping down on the use of blockchain technologies without prior permission.
China is a democratic country. “banned” Because both Bitcoin and Stablecoins are similar, they have been compared several times. “tremendous threat” Lyman said Cointelegraph that capital controls are critical to China’s economy.
“The entire Chinese economy depends on capital controls. China is able to keep money within the country by preventing its elite from moving money out of the country,” He said.
China has a lot to offer reaffirmed its stablecoin ban in 2025Instead, choose to launch the digital yuanLyman suggested that a central bank digital currency with a high yield would be a good way to manage capital flows, and also capture more of the forex market.
CBDCs have full programmability and are controlled by either the central banks or governments issuing fiat digital currency.
Lyman says that the sanctions haven’t actually stopped crypto activities such as Bitcoin and stablecoins flowing to or from China.
Chinese mining pools, despite a blanket prohibition on Bitcoin mining still control over 36% of global hashrate (the total computing power that mining pools contribute to the security of the network), according Hashrate Index
Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears
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Source: cointelegraph.com
