The Sino-US Game in the Stablecoin Market

Recently, the stablecoin market has become a new battlefield for the game between China and the United States. Simply put, a stablecoin is a relatively stable cryptocurrency, unlike Bitcoin, which has huge price fluctuations. Now, the United States and China are competing in this field, and both want to compete for more market share.
In recent years, the United States has faced debt problems in its economy, so it wants to expand the potential buyer group of U.S. debt by issuing stablecoins and get rid of its dependence on overseas sovereign central banks. For example, the GENIUS Act passed by the U.S. Senate stipulates that for every dollar stablecoin issued, a corresponding value of U.S. Treasury bonds must be purchased. In this way, the United States can transfer debt risks to the world.
China has a completely different attitude towards stablecoins and virtual currencies. China believes that stablecoins help enhance the country's monetary hegemony and fiscal strength. Therefore, China is actively promoting the internationalization of the digital RMB. Hong Kong was selected as a test field for the digital RMB and became a "stablecoin regulatory special zone." By issuing stablecoins in Hong Kong, the Hong Kong dollar can gradually get rid of its dependence on the U.S. dollar and instead anchor the RMB and other creditworthy international financial assets.
This battle between China and the United States for stablecoins indicates that the global monetary landscape is undergoing profound changes. A more diversified international monetary system is gradually taking shape. However, no matter who wins or loses, the ultimate beneficiaries are consumers and businesses around the world.
In general, the Sino-US game in the stablecoin market is like a war without gunpowder, with both sides fighting for market share in their own way. But no matter what the outcome, this game will have a profound impact on future international trade, payment systems, and monetary patterns.