The New York Times: Cryptocurrency is launching a financial "coup"

Source: The New York Times

Authors: Dan Davies; Henry J. Farrell

Original Title: Crypto Is a Threat to the U.S. Financial System

Translated by: BitpushNews Yanan

For the U.S. cryptocurrency interest group, this week has been quite fruitful. The Genius Act passed in the Senate, officially legalizing stablecoins. More notably, President Trump hosted a private dinner for the top 220 investors holding "Trump" meme coins ($Trump memecoin). However, for the United States as a whole, this is hardly a week worth celebrating.

Stablecoins are crypto assets backed by traditional assets like the U.S. dollar. The USD1 stissueduing by the the Trump family through their crypto cryptocurrency company World Liberty Financial is a typical example. If these digital currencies are used for political interest transfer, their harm cannot be underestimated. But even more worrying is the potential deep impact they could have on the U financial a risk that is more subtle and more destructive.

At that time, who can prevent this panic from spreading throughout the entire banking system? This role must be undertaken by institutions with sufficient rescue capabilities - and it must involve real US dollars, not those dubious cryptocurrencies.

This explains why the question "Should the United States support dollar stablecoins" is so difficult to answer. No wonder reports show that many countries are trying to reduce their banks' dependianceence financing p>The community the stablecinsation ofablealization as potential threat stbecomes a new financial tool by States, Washington mayedlyly penetrate other countries' financial systems. More woris that the new binding relationship between the US dollar and cryptocurrencies may enable illegal fund flows to reach an unprecedented scale.

Philip Lane, the European Central Bank's chief economist, warned that dependence on stablecoins would cause financial activities to shift from the euro system to US-backed private cryptocurrencies, making Europe more vulnerable when facing US economic pressure.

As an important part of the EU's "Strategic Autonomy" plan (dependon the the is accelerating the construction of the digital euro. This publicly-led digital currency will not only provide a provide an alternative payment network, but will also also have built-in built privacy protection and security mechanisms - in stark contrast to private stablecoins.

The current situation indicates that stablecoins have not only able failedate dollargemexpected "helping the United States catch up with other countries but are also instead accelerating countries' efforts to from break free from the US dollar system. Europe is not only only constructising own financial safety net but also also planning a to a new global alternative - this US-led system that is increasingly losing trust is facing unprecedented challenges.

The European Central Bank's digital euro project leader has begun discussing its "international application prospects", create payment system respects national sovereignty, sovereignty, reduces systemic risksemic new development opportunities".

Ironically, stablecoins were originally hoped to help regulate theotic the chaotic crypto market by leveraging US US dollar credit,, but now instead transmit the cryptocurrency market's chaos - along with the Trump administration's unique policy orientation -> - into the traditional financial system dominated by the US dollar. This reverse penetpenetis triggering deeper systemicemic risks.

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