Financial Revolution in the Digital Age: How the US Dollar Stablecoin is Reshaping the Global Economic Order

1. The Rise of Digital Dollar: Reshaping the Financial Landscape

The U.S. government is providing legitimacy to stablecoin issuers through the "Genius Act," effectively creating a 21st century "Digital East India Company." These recognized stablecoin issuers will control the global financial landscape of the new era, similar to how the early East India Company controlled maritime trade routes.

This move marks the beginning of a new financial era. Stablecoins, as a bridge connecting traditional finance and the crypto world, will provide an unparalleled channel for the spread of the US dollar. They can bypass the traditional banking system and directly penetrate every corner of the global economy.

For countries with weak credit, this means that an unprecedented wave of "super dollarization" is about to arrive. The public can easily exchange their devalued local currency for stable digital dollars, which will seriously threaten the monetary sovereignty and economic independence of these countries.

II. The New Global Financial Order: America's Strategic Deployment

The "Genius Act" is not just a domestic legislation, but also a strategic layout for the United States in the global financial landscape. By supporting a "free financial system" based on public blockchain, the U.S. is constructing a "Bretton Woods system" for the digital age.

This open financial network stands in stark contrast to the closed systems dominated by countries like China. The United States is leveraging its adversaries' fears of losing control to build its own moat, attracting global innovators and users.

In addition, stablecoin transactions based on public blockchains bypass traditional financial infrastructures such as SWIFT, rendering the efforts of other countries to establish alternative systems irrelevant. This is a dimensionality reduction attack by the United States on its competitors.

3. The De-nationalization of Assets: The Revolution of RWA and DeFi

Stablecoins are just the beginning of the financial revolution. Real-world assets on the blockchain (RWA) will further disrupt the traditional financial system. By tokenizing physical assets and allowing them to circulate freely on a global scale, RWA is severing the connection between assets and specific national jurisdictions.

The "de-nationalization" of this asset will profoundly change the global financial landscape. It allows capital to easily bypass national borders and regulations, forming a new world parallel to the traditional financial system.

Decentralized Finance ( DeFi ) replaces the role of traditional financial intermediaries through smart contracts, further promoting the decentralization and denationalization process of the financial system.

4. The Arrival of the Sovereign Individual Era

With the globalization of capital flows and the decentralization of assets, we are entering a new era dominated by "sovereign individuals." This revolution driven by stablecoins and artificial intelligence is fundamentally changing the nature of power.

In this new world, elite individuals can easily allocate wealth globally and instantaneously transfer it across different jurisdictions using stablecoins. This severely undermines the state's control over its population and property within its territory, shaking the foundations of the Westphalian system.

With the advancement of privacy technologies, future financial transactions may achieve complete anonymity and untraceability, which will pose the ultimate challenge to the national tax capacity. When a nation loses its ability to tax, it also loses its capacity to effectively regulate and provide public services.

We are standing at the dawn of the disintegration of an old world and the emergence of a new order. This new world will grant individuals unprecedented freedom and power, but it will also bring unimaginable challenges and uncertainties.