China's Stablecoin Strategy: A Defensive Move Against US Dollar Dominance Through the GENIUS Act

China's Stablecoin Strategy: A Defensive Move Against US Dollar Dominance Through the GENIUS Act

China's foray into the stablecoin market: A defensive move against the dominance of the US dollar

China's involvement in the stablecoin space represents a significant step in countering the continued dominance of the US dollar. This initiative is seen as a defensive move to strengthen China's economic independence and position its currency in a changing global financial environment.

A key trigger for this policy change is the US GENIUS Act. This law has caused a stir in recent months and is increasingly influencing the strategies of many countries, including China. The GENIUS Act aims to further consolidate the influence of the US dollar, causing other nations to rethink their financial strategies.

By developing and launching its own stablecoins, China aims not only to modernize the national financial system, but also to regain control over financial transactions and currency flows. In a global context where digital currencies are gaining traction, this push could permanently change China's position in international trade and the fintech industry.

In summary, China's foray into the stablecoin market should be seen both as a response to external political developments and as part of a strategic long-term vision for the international monetary order.