The era of stablecoins has arrived. Is the dream of Bitcoin becoming the "global currency" still possible?

As the US legislates the recognition of stablecoins, the decentralized nature of the Bitcoin network makes it a more ideal blockchain choice to address the challenges posed by the dollar in a multipolar world. This article is sourced from a piece by Juan Galt, organized, compiled, and written by Foresight News. (Background: Stripe announces over 40 new upgrades: Open Issuance platform allows businesses to issue stablecoins at the click of a button and collaborates with OpenAI to release the ACP protocol…) (Background note: The ultimate battle of AI payments: The three giants of Google, Coinbase, and Stripe compete.) With the passage of the GENIUS Act, which solidifies the status of stablecoins backed by US Treasury bonds, Bitcoin's decentralized network positions it as a more suitable blockchain for global adoption, responding to the trend of declining demand for US bonds in a multipolar world. As the world transitions from a US-led unipolar order to a multipolar landscape led by BRICS countries, the dollar faces unprecedented pressure due to declining bond demand and rising debt costs. The GENIUS Act, passed in July 2025, marks a bold strategy by the US to address this situation by legislating the recognition of stablecoins backed by US Treasury bonds, thereby unleashing a massive demand for US bonds abroad. The blockchain carrying these stablecoins will shape the global economy for decades to come. With its unparalleled decentralized characteristics, the privacy of the Lightning Network, and robust security, Bitcoin becomes the superior choice to drive this digital dollar revolution, ensuring lower conversion costs when fiat currencies inevitably decline. This article explores why the dollar must and will be digitized through blockchain, and why Bitcoin must become its operation track for the US economy to achieve a soft landing from the heights of global empire. The end of the unipolar world The world is transitioning from a unipolar world order (where the US was the only superpower capable of influencing markets and dominating global conflicts) to a multipolar world, where Eastern alliances can organize themselves without being influenced by US foreign policy. This Eastern alliance is known as BRICS, composed of major countries such as Brazil, Russia, China, and India. The inevitable result of the rise of BRICS is a geopolitical reorganization that poses a challenge to the hegemony of the dollar system. Numerous seemingly isolated data points indicate this restructuring of world order, such as the military alliance between the US and Saudi Arabia. The US no longer defends the petrodollar agreement, which stipulated that Saudi oil would only be sold in dollars in exchange for US military defense of the region. The petrodollar strategy has been a major source of dollar demand and has been regarded as a key to US economic power since the 1970s, but it has effectively ended in recent years, particularly since the onset of the Ukraine war, when Saudi Arabia began accepting currencies other than the dollar for oil-related trade. The weakness of the US bond market Another key data point in the geopolitical transformation of world order is the weakness of the US bond market, with growing skepticism about the long-term creditworthiness of the US government. Some are concerned about internal political instability, while others doubt whether the current government structure can adapt to the rapidly changing high-tech world and the rise of BRICS. Reports suggest that Elon Musk is one of the skeptics. Musk recently spent months working with the Trump administration in an attempt to reorganize the federal government and the country's financial situation through the Government Efficiency Office, but abruptly withdrew from politics in May. When Musk recently made an appearance at a summit, he shocked the internet by stating, “I haven't been to Washington since May. The government is basically hopeless. I admire David Sacks' noble efforts… but ultimately, if you look at our national debt… if artificial intelligence and robots can't solve our national debt problem, we are doomed.” If even Musk cannot extricate the US government from financial misfortune, who can? Such concerns are reflected in the low demand for US long-term bonds, which is manifested in the need to raise interest rates to attract investors. Today, the yield on US 30-year Treasury bonds stands at 4.75%, the highest in 17 years. According to Reuters, auction demand for long-term bonds like the US 30-year Treasury is also declining, with demand in 2025 being “disappointing.” The weakening demand for US long-term bonds has significant implications for the US economy. The US Treasury must offer higher interest rates to attract investors, which in turn increases the interest the US government must pay on its national debt. Currently, US interest payments are approaching one trillion dollars annually, exceeding the entire military budget of the country. If the US fails to find enough buyers for its future debt, it may struggle to pay its current bills and may have to rely on the Federal Reserve to purchase this debt, which would expand its balance sheet and money supply. The implications are complex but could likely lead to dollar inflation, further damaging the US economy. How sanctions devastated the bond market Further weakening the US bond market is the fact that in 2022, the US manipulated its controlled bond market to deal with Russia in response to its invasion of Ukraine. At the time of the invasion, the US froze Russia's overseas treasury reserves, which were intended to repay its national debt to Western investors. Reports indicate that the US also began to block Russia's attempts to repay all debts to foreign bondholders in order to force Russia into default. A female spokesperson for the US Treasury confirmed at the time that certain payments would no longer be permitted. “Today is the deadline for another debt payment by Russia,” the spokesperson said. “As of today, the US Treasury will not allow any dollar debt payments from the Russian government’s accounts in US financial institutions. Russia must choose whether to exhaust its remaining dollar reserves or new sources of income, or default.” By using its diplomatic policy sanction mechanisms, the US effectively weaponized the bond market against Russia. However, sanctions are a double-edged sword: since then, foreign demand for US bonds has weakened as countries that disagree with US foreign policy seek to diversify their risks. China has led this trend away from US bonds, with its holdings peaking at over 1.25 trillion dollars in 2013, and accelerating its decline since the onset of the Ukraine war, currently nearing 750 billion dollars. While this event showcased the devastating efficacy of sanctions, it also deeply harmed confidence in the bond market. Not only was Russia under Biden's government prevented from repaying its debts, but also investors were harmed as a collateral damage, and the freezing of its foreign treasury reserves indicated to the world that if you, as a sovereign nation, oppose US foreign policy, all bets are off, including the bond market. The Trump administration no longer relies on sanctions as a primary strategy, as they harm the US financial sector and have shifted to a tariff-based diplomatic approach. These tariffs have had mixed results. While the Trump administration boasts of record tax revenues and private sector infrastructure investment domestically, Eastern countries have accelerated their cooperation through the BRICS alliance. The stablecoin strategy handbook While China has reduced its holdings of US bonds over the past decade, a new buyer has emerged, quickly rising to the top of the power structure. Tether, a fintech company that emerged in the early days of Bitcoin, now holds 171 billion dollars in US bonds, close to a quarter of China's holdings, and exceeds most other countries. Tether is the issuer of the most popular stablecoin USDT, with a circulating market capitalization of 171 billion dollars. The company reported profits for the first quarter of 2025…