Hyperinflation is fueling the growth of stablecoins as citizens in a growing number of countries lose faith in local currencies but can’t access actual dollars.
The U.S. government has said dollar-denominated stablecoins will help preserve the dollar’s role as the global reserve currency. That’s in spite of decreasing faith in America’s ability to honour its long-term debts but also due to the lack of a credible dollar alternative.
The BRICS club may be growing but so long as China and Russia are two of its biggest components, the rest of the world isn’t going to build its financial houses on those uncertain foundations.
Some nations with failing currencies restrict access to real dollars but blockchains don’t always recognize borders. Venezuela is begrudgingly allowing the use of dollar-denominated stablecoins because U.S. sanctions are limiting inflows of hard currencies.
Some countries could soon face a choice of whether to join the nations that already use the dollar as their own currency, or at least accept the dollar alongside their national currency. And if they wait too long, their frustrated citizens might make that choice for them.
Stablecoins are the least ‘crypto’ thing in ‘crypto’ and are achieving significant adoption in mainstream finance precisely due to their non-speculative nature. Proof that rollercoasters belong in amusement parks, not on balance sheets (corporate or personal).
Calvin Ayre
SEP 18, 2025
https://x.com/CalvinAyre/status/1968650200072733174?t=SPNQ7gdaUeBplh0a-tKv0A&s=09
https://t.me/CalvinAyre/990
The U.S. government has said dollar-denominated stablecoins will help preserve the dollar’s role as the global reserve currency. That’s in spite of decreasing faith in America’s ability to honour its long-term debts but also due to the lack of a credible dollar alternative.
The BRICS club may be growing but so long as China and Russia are two of its biggest components, the rest of the world isn’t going to build its financial houses on those uncertain foundations.
Some nations with failing currencies restrict access to real dollars but blockchains don’t always recognize borders. Venezuela is begrudgingly allowing the use of dollar-denominated stablecoins because U.S. sanctions are limiting inflows of hard currencies.
Some countries could soon face a choice of whether to join the nations that already use the dollar as their own currency, or at least accept the dollar alongside their national currency. And if they wait too long, their frustrated citizens might make that choice for them.
Stablecoins are the least ‘crypto’ thing in ‘crypto’ and are achieving significant adoption in mainstream finance precisely due to their non-speculative nature. Proof that rollercoasters belong in amusement parks, not on balance sheets (corporate or personal).
Calvin Ayre
SEP 18, 2025
https://x.com/CalvinAyre/status/1968650200072733174?t=SPNQ7gdaUeBplh0a-tKv0A&s=09
https://t.me/CalvinAyre/990
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