The US is stepping into a new era of digital finance with the proposed GENIUS Act. Designed to legalize the issuance of regulated stablecoins backed by US Treasury bonds, this move is billed as a leap forward for streamlining global payments.
While the promise of tech innovation is enticing 🚀, experts warn that transforming public debt into collateral for a new class of private money may invite unforeseen risks. Financial institutions worldwide—including central banks, sovereign funds, and institutional investors—could become entangled in a hyper-financialized ecosystem ⚠️.
This bold policy initiative has sparked a spirited debate. Is the GENIUS Act a visionary breakthrough for digital finance, or does it risk triggering a domino effect of global financial instability? Many believe that non-US economies should view this as a wake-up call to accelerate dedollarization, strengthening monetary sovereignty and systemic resilience.
As discussions heat up, policymakers and market watchers are keeping a close eye on how this new digital finance framework might reshape the global financial landscape in surprising ways.
Reference(s):
cgtn.com
