Understanding the Most Stable Currency in 2025 vs. the Most Stable Currency in the Coin Industry with One Picture The essence of stablecoins: allowing ordinary people to pay for US debt On May 20th, the US House of Representatives passed the so-called "stablecoin usage responsibility innovation bill", also known as the "stablecoin bill" or "genius bill" (GENIUS, which means "genius" in English). The core content of this bill has three points: One is to allow any individual and private institution to issue stablecoins. Secondly, the issuance of stablecoins must be tied to US dollar assets in a 1:1 ratio, meaning that for every 1 yuan of stablecoin issued, there must be a 1 dollar deposit or 1 dollar bond endorsement, and a commitment to redeem US dollars at a 1:1 ratio at any time. Thirdly, stablecoins are not allowed to be used for investment, nor can they accept any returns, including interest or investment income. These three statutory provisions determine the nature and essence of stablecoins. The requirement to bind 1:1 with US dollar assets determines that the issuance of pure algorithmic stablecoins like Bitcoin is not allowed. Does this seem to imply that virtual digital currencies have real value support? Wrong. Please note that the next item does not allow stablecoins to accept any returns. No matter how the price of the stablecoin you issue fluctuates in the market, the issuer is not allowed to use the profits to invest, nor is it allowed to pay interest or investment income to the coin holders who purchase stablecoins, and must ensure that they can redeem US dollars at a 1:1 ratio at any time. This obviously means that issuing stablecoins will not bring profits to the issuer, it is purely a matter of serving the people. In that case, who would still be willing to do such a thankless task? Don't worry, please continue to pay attention to the next detail. What does it mean that the assets that must be bound when issuing stablecoins can be US dollars or US bonds? This means that issuers can bind US bonds to issue stablecoins at a 1:1 ratio. US Treasury bonds have returns, with current yields generally above 4%. For example, if Musk wants to issue his own stable currency, such as 100 billion Musks, and after the sale, he will use the $100 billion he received to purchase US treasury bond bonds as asset support, so he can have $4 billion in treasury bond bond yields. With Musk's business reputation, if his Musk becomes highly sought after in the market and his price skyrockets, and the price of one Musk coin goes far beyond $1, but rises to $100, then Musk's market value becomes $10 trillion, and Musk can purchase $10 trillion in bonds and earn $400 billion in returns. Of course, Musk can also choose not to buy US Treasury bonds and only hold the US dollars paid by the buyers as asset support, ready to redeem the currency for sale at any time. But in this way, there is no profit at all, only the cost of issuance and operation. Musk is not stupid, would he do such a thing? So, stablecoins are not allowed to be used for investment, nor are they allowed to accept any investment returns, but they can be used to purchase US bonds. This is clearly a carefully designed targeted digital currency specifically designed to digest US bonds. Anyone can issue stablecoins by filing with the stablecoin regulatory agency specifically established by the US government. This is essentially to involve private institutions and individuals widely in the team of collecting and storing US bonds, and to transfer all the channels for digesting US bonds to the general public. In this way, US bonds can expand infinitely. The US government does not need to issue currency through the Federal Reserve to sell US bonds, which clearly deprives the Federal Reserve of its power to issue currency. According to a US congressman, with $200 trillion in assets, is it still enough to digest just $40 trillion in debt? In theory, it's not really a problem. Whether the Federal Reserve continues to print money or not, as long as it can make the $200 trillion hidden in various corners come forward to digest the US debt, it is not a problem. This certainly requires institutional design. We must acknowledge that the United States is indeed a country that has produced many "geniuses", so there will definitely be a "genius bill" introduced, and stablecoins will emerge as a result. If we assume that the so-called $200 trillion assets of US lawmakers are real, then a significant conclusion is that the limit of US debt is $200 trillion. It seems that the collapse of US Treasury bonds has become a temporary false proposition. At the current rate, US Treasury bonds can continue to expand for at least another 30-50 years without any problem. In theory, what would reality be like? play The reality we see is that US bond yields have not shown a downward trend due to the introduction of the 'genius bill'. It is evident that US Treasury bonds have not started to gain popularity due to the emergence of stablecoins. The US stock market has not received much boost and has been struggling to survive. Another interesting phenomenon is that a large amount of capital in the form of dollars is flowing into Hong Kong, making it once again a center for international capital gathering. Various companies are also beginning to flock to Hong Kong for listing, although these US dollar capital have not yet flowed into Hong Kong stocks on a large scale, but are gathering in Hong Kong to wait and see. This certainly indicates that these capital are optimistic about Chinese assets but have doubts, waiting for the outcome of the tariff war and other wars, but at the same time, it also shows that it is certain that these capital no longer have confidence in the United States. Even the most 'genius' design, if not recognized by the world, is still zero. No one is a real fool, endlessly expanding the US debt and making the general public pay for it. Who will ultimately cover the US debt? If the US government had this ability, it would not have completely shifted the risk of US debt onto the people. Although Trump is extremely intelligent, the practice of transferring the debt risk to the people is obviously more terrible than letting the Federal Reserve and foreign central banks bear the risk of US debt. Once the US Treasury defaults, neither the Federal Reserve nor foreign central banks will rebel. If the American people really become victims of US debt, it may mean the demise of the United States. Along with the introduction of the stablecoin bill, the United States also introduced the so-called "Big Beautiful Act". The former is to transform debt, while the latter is to infinitely expand debt, which can be described as a logically rigorous chain. I don't know how many people in the United States really understand such exquisite design. Musk definitely understood. Musk said that the bill, which is over 6000 pages long, only gave lawmakers two days to read and then vote it through. Although it was passed by a narrow margin of one vote, Musk still angrily accuses lawmakers of not reading the bill and then voting on it. Isn't this a joke about the country's future and destiny? So Musk was angry and fell out with Trump. And then, what else can we do? There was a small-scale protest in Los Angeles. Trump immediately found an opportunity to divert his attention and quickly sent troops to suppress it. We must make things bigger, so that people no longer pay attention to the two bills, so that the bills can smoothly go through the legal procedures. There is a high probability that the two bills will pass smoothly, and then the United States will enter another new era of the US dollar and US debt. Is it a disaster or a blessing coming? Now it seems that the tariff war and other wars are not Trump's core strategies, but all of them serve Trump's goal of debt reduction. Tariff war is not the purpose. Trump also knows that China does not care how much tariffs are added. It forces you to negotiate through tariff war, and ultimately asks you not to sell US debt. The purpose is to cooperate with the strategy of stabilizing monetized debt. Hillary Clinton once said that Trump's goal is to let the US debt default, that is, to dishonor the world at the expense of US credibility. This judgment is very accurate. It is absolutely true that Trump is shameless and has no credibility with the United States. What can't a shameless and untrustworthy person do? However, Trump, who had entered the palace for the second time, was obviously no longer so direct or reckless. He came up with a more tactful or insidious way. Regardless of whether stablecoins are successful or not, it is certain that US bonds will default in the future. Even if the US Treasury does not default temporarily, the US dollar will rapidly depreciate until it becomes worthless paper. Whether the US Treasury defaults or the US dollar depreciates, it will lead to the instability of stablecoins, ultimately leading to their destruction along with the US Treasury and the US dollar. Of course, they also have pure algorithm virtual currencies such as Bitcoin and Trump Coin. There are currently over 4000 pure algorithmic virtual currencies worldwide. I just want to ask, when the US dollar is abolished, how will these virtual currencies denominated in US dollars exist? Don't tell me old stories about blockchain, decentralization, and so on. The fact that virtual currency has never survived without fiat currency since its inception is an iron fact and reality. It can only be said that BTC can revolutionize the global payment system, but not the value of fiat currency itself. ——Geng Baixing Jun