Original Title: "Why Are Dollar Stablecoins the New Dollar 3.0?"
Original Author: Ye Kai, Huaxia Digital Capital

Looking back at the course of history, we find that the dominant position of the dollar in the global financial system did not come out of nowhere. The dollar's widespread use globally has undergone several stages of evolution. From the establishment of the Bretton Woods system to the rise of petrodollars, and now to today's dollar stablecoins, the dollar's hegemonic status has been continuously consolidated and strengthened. Today, we are entering a new era—the Dollar 3.0 Era, characterized by the rise of dollar stablecoins.

The emergence of dollar stablecoins (such as USDT, USDC, etc.) is not merely a product of technological innovation; it represents a significant transformation in the global financial system. Through stablecoins, the influence of the dollar is no longer confined to traditional banking systems and payment networks; it is beginning to permeate the global digital currency market through blockchain technology, thereby forming a new global payment and financial mechanism.

So, why are dollar stablecoins referred to as the "New Dollar 3.0 Era"? What does their emergence mean for the global financial system, the U.S. government, and emerging markets? Let’s discuss this issue together.

1. The "Dam" of U.S. Debt is Forcing the U.S. Government to "Find Money"

The U.S. debt issue is not new; it has become a focal point in the global financial market. Currently, the total U.S. debt has soared to $36 trillion and is rapidly increasing each year. To maintain this massive debt, the U.S. government relies on funding support from global markets, particularly through bond issuance to cover fiscal deficits. However, traditional major buyers of U.S. debt—such as China and Japan—are gradually reducing their purchases of U.S. Treasury bonds. This has put immense financing pressure on the U.S. government.

To address this issue, the U.S. government passed the "GENIUS Act," which changed the rules of the global stablecoin market. According to this act, all dollar stablecoin issuance reserves must be linked to cash or short-term U.S. Treasury bonds, meaning that 1 dollar of stablecoin must equal 1 dollar of short-term Treasury bonds. This practice turns U.S. Treasury bonds into the "legal foundation" of dollar stablecoins, which also means that if an institution wants to issue dollar stablecoins, it must first purchase short-term Treasury bonds. This change is akin to "opening the floodgates" for the U.S. government's fiscal crisis, while also tightening the connection between the stablecoin and Treasury bond markets.

2. How Do On-Chain Dollars "Suck Up"?

As the global market demand for dollar stablecoins continues to grow, issuers of stablecoins like Tether have begun to switch most of their reserve assets to short-term U.S. Treasury bonds. For example, by 2022, Tether had transferred about 75% of its reserve assets to the short-term Treasury bond market. This means that the demand for stablecoins will become an important support force for the Treasury bond market—through this mechanism, global investors (especially users of stablecoins) provide low-interest funds to the U.S. government, which in turn allows them to enjoy the convenience of fast payments and settlements through stablecoins.

This change is not only happening in developed countries. In some emerging markets, such as Nigeria, the Philippines, and Vietnam, dollar stablecoins like USDT have become major payment tools, especially in remittance scenarios. For instance, foreign workers in the Philippines quickly and cost-effectively send their salaries back home through platforms like PayPal, bypassing the high fees of traditional remittance channels.

However, the impact of dollar stablecoins is not limited to the payment sector. In these countries, the use of dollar stablecoins is beginning to affect domestic monetary policy. For example, in Nigeria, due to the high premium of USDT (which once reached 20% relative to the Naira), the local currency, the Naira, has suffered severe depreciation, causing the monetary policy to lose some of its effectiveness. This phenomenon of "dollarization" has put financial sovereignty pressure on many emerging markets, prompting them to reassess the challenges posed by dollar stablecoins.

3. Stablecoins and U.S. Treasury Bonds: Sweet Symbiosis or Dangerous Siamese Twins?

The relationship between dollar stablecoins and U.S. Treasury bonds is quite complex and can be seen as a form of dual symbiosis. They depend on each other, forming a new global financial ecosystem. In the minting phase, the demand for short-term Treasury bonds from stablecoins continues to increase, providing funding support to the U.S. government through the purchase of these bonds. On the other hand, in the circulation phase, stablecoins automatically provide a "free sales" channel for the Treasury bond market through their payment flows worldwide.

However, this relationship is not always risk-free. The dependency between stablecoins and Treasury bonds may lead to some potential risks. For example, if there is a massive redemption wave in the stablecoin market, the issuers of stablecoins would need to sell an equivalent amount of Treasury bonds to redeem these stablecoins, which could lead to severe fluctuations in the Treasury bond market, subsequently pushing up bond yields. If Treasury bond yields soar, the U.S. government's financing costs will also rise, exacerbating the debt pressure on the U.S.

Additionally, the phenomenon of "dollarization" in emerging markets also brings risks. If these countries become overly reliant on dollar stablecoins, any fluctuations in exchange rates or policy changes could undermine their monetary policy independence, posing a significant threat to their economic sovereignty.

4. Dollar 3.0: From Bretton Woods to On-Chain Dollars

The global dominance of the dollar has not been achieved overnight. From the establishment of the Bretton Woods system to the rise of petrodollars, and now to today's dollar stablecoins, we can see the gradual evolution of the dollar in the global financial system.

Dollar 1.0 Era: Under the Bretton Woods system, the dollar became the core currency for global trade and payments by being pegged to gold. This system ensured the dollar's dominant position through a clearing monopoly.

Dollar 2.0 Era: Entering the petrodollar era, the dollar's influence further expanded, especially in the global energy and debt markets, where it was widely used for oil transactions and international debt settlements.

Dollar 3.0 Era: Today, with the rise of dollar stablecoins, the dollar is entering the digital asset realm through blockchain technology. These on-chain dollars not only completely free themselves from the constraints of traditional banking systems in terms of payments but also, through their close integration with the Treasury bond market, allow global investors to enjoy fast payments while inadvertently providing funding support for the U.S. government's debt.

What does this change mean for the U.S.? Through dollar stablecoins, the U.S. government has "outsourced" its debt crisis to global individual and corporate investors. This approach allows the U.S. to obtain substantial external funding without increasing domestic burdens, while also driving global demand for the dollar.

However, for emerging markets, the proliferation of dollar stablecoins is weakening the financial sovereignty of these countries. With the widespread use of "on-chain dollars," many countries' monetary policies are beginning to lose independence, and their economies are to some extent influenced by the fluctuations of the dollar.

Conclusion: Future Challenges of Dollar 3.0

The emergence of dollar stablecoins marks a transformation in the dollar's global hegemony. The dollar no longer solely relies on traditional financial systems; it has expanded into the digital world through blockchain technology and occupies a dominant position in global payment and financial systems. However, behind this "Dollar 3.0" are both tremendous opportunities and significant risks. In the future, whether dollar stablecoins can successfully maintain their global dominance will depend on their ability to find a perfect balance between stability, compliance, market demand, and risk management.

Huaxia Digital Capital is a digital investment bank focused on the RWA (Real World Asset Tokenization) sector, dedicated to market research and education, issuance and investment incubation, RWA asset management platforms, digital financial innovation, and other solutions, aiming to build a bridge between real-world assets and the value of the crypto world.

ARAW Always RWA Always Win! The RWA market will quickly find its place in the wild growth of 2025. Friends interested in the topic of RWA and stablecoins can add WeChat YekaiMeta to join the discussion group.

This article is from a submission and does not represent the views of BlockBeats.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。