How America’s Stablecoin Gamble Could Backfire—and Hand China the Advantage

The United States is pursuing a stablecoin-based economy via legislation like the GENIUS Act to reinforce the dollar's global dominance, building on its existing power derived from Big Tech and control over international payments.

However, former Greek Finance Minister Yanis Varoufakis argues this strategy is a recipe for disaster. He contends that allowing private issuers and banks to build the stablecoin economy deepens systemic fragility, as the Federal Reserve is beholden to Wall Street interests like JPMorgan and Goldman Sachs. A collapse of a major stablecoin, such as Tether, could trigger a self-inflicted global financial crisis, impacting foreign economies that rely on dollar-backed tokens without recourse to print dollars.

Conversely, Varoufakis praises China's state-coordinated approach, where financial and tech leaders answer to the government, ensuring stability through strict supervision, exemplified by systems like WeChat Pay and the digital yuan. He believes this disciplined, state-controlled capitalism is better positioned to prevail in the coming struggle for global economic power against the US's politically stalled, Wall Street-dominated system.

(Source：BeInCrypto)