The post Push For Stablecoin Adoption In The West An Exercise At Undermining China’s Sovereignty? appeared on BitcoinEthereumNews.com.

Key Insights: China expresses concern about rising stablecoin adoption and potential threat to its Sovereignty. Former wall Street investor reveals how stablecoins support U.S dollar hegemony. How Ant Pay’s recent push into stablecoin may underscore China’s efforts to compete on a level playing field. Stablecoin adoption has reached new heights so far this year across the globe. Especially with countries like the U.S leaning heavily towards stablecoin legislation but those efforts have attracted negative criticism especially from China. Recent reports revealed China’s negative criticism of the U.S’ stablecoin pursuits. The Asian giant recently warned that stablecoins will threaten sovereignty by undermining its tight monetary control. China also noted that stable coins will vastly transform the future of the monetary landscape. China’s criticism of the U.S’ aggressive push towards stablecoin adoption suggested that Trump’s recent efforts were aimed at injecting new life into the U.S dollar’s dominance. Meanwhile, China has maintained a strict monetary policy and has been chipping away at the U.S dollar’s dominance with its de-dollarization efforts. But how exactly do U.S dollar backed stablecoins threaten China’s sovereignty? How do stablecoins expand U.S hegemony and threaten China? The U.S’ requirement that stable coin issuers should back their stablecoins at a 1:1 ratio with the dollar aims to establish a strong link to blockchain based assets. We recently observed that the U.S government has been struggling to sell treasuries at lower rates because investors demanded higher interest rates on account of the rising risks caused by rapidly rising debt. One of the consequences of the stablecoin approach is that it will allow the U.S to attract treasury deposits with ease on the blockchain. Stablecoin payments could potentially undercut China’s payment system, thus making it more difficult for alternative currencies like the Chinese Yuan to thrive under such conditions. Source: X…

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Filed under: News - @ June 16, 2025 9:23 pm