Stablecoins Become Battleground in Global Currency Power Struggle

A Russian government advisor has raised concerns that the United States is leveraging stablecoins as a strategic tool to devalue its $35 trillion national debt, according to reports from the Eastern Economic Forum in Vladivostok. Anton Kobyakov, a top aide to Russian President Vladimir Putin, stated that the U.S. is “rewriting the rules” of the global currency system by promoting digital assets and gold, with the intent of diminishing confidence in the dollar and shifting the global financial landscape [2]. Kobyakov's remarks draw historical parallels, suggesting that the U.S. seeks to distribute its financial burdens globally, reminiscent of actions taken in the 1930s and 1970s [2].

According to Kobyakov, the U.S. strategy involves transitioning its debt into dollar-backed stablecoins, potentially allowing the country to reset its economic standing and avoid direct financial obligations. This approach is linked to broader legislative initiatives, such as the recently signed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to regulate the stablecoin sector by mandating that tokens be fully backed by cash or short-term Treasury bonds and are subject to anti-money laundering regulations [1]. The act also prohibits stablecoin issuers from paying interest, but crypto exchanges are still permitted to offer rewards on stablecoin holdings, further blurring the lines between digital and traditional financial instruments [1].

The U.S. Treasury Secretary, Scott Bessent, has publicly endorsed the use of stablecoins to reinforce the dollar’s global dominance, suggesting that they are a means to maintain the U.S. as the world’s premier reserve currency. This aligns with statements from former House Speaker Paul Ryan, who argued that stablecoins could generate demand for U.S. debt instruments and mitigate the risks of a failed debt auction [2]. The U.S. has also seen legislative proposals like the Lummis Bitcoin Act, which envisions the government purchasing and holding Bitcoin, potentially using it to offset debt obligations [2].

Despite the U.S. government’s push for digital financial innovation, concerns persist about the implications for traditional banking systems. Research from the Federal Reserve Bank of Kansas City warns that increased demand for stablecoins could reduce the availability of funds for banks to lend, potentially affecting interest rates and borrowing costs [1]. The American Bankers Association has echoed these concerns, noting that a shift of $6.6 trillion from bank deposits to stablecoins could create long-term financial instability [1]. Meanwhile, crypto advocates argue that stablecoin rewards could foster competition among financial institutions, driving banks to improve their offerings to retain customers [1].

In response to U.S. developments, Russia has initiated its own stablecoin projects, including a ruble-backed digital currency set to launch on the Tron blockchain [2]. The move is partly intended to reduce reliance on the U.S. dollar and diversify its financial tools, especially in light of sanctions and geopolitical tensions. Similarly, China has shown cautious interest in digital currency, with discussions around stablecoins in Hong Kong suggesting potential avenues for expanding the yuan’s influence in global trade [3]. The country’s historical crackdowns on cryptocurrencies have created a complex regulatory environment, but recent shifts indicate a possible softening stance, particularly in offshore financial hubs like Hong Kong [3].

As the global stablecoin landscape continues to evolve, the interplay between U.S. regulatory efforts and geopolitical strategies will likely remain a focal point of financial and political discourse. The broader implications for international trade, monetary policy, and economic stability remain subject to ongoing debate, with both regulators and market participants monitoring developments closely [1].

Source:

[1] The Loophole Turning Stablecoins Into a Trillion-Dollar Fight (https://www.wired.com/story/genius-act-loophole-stablecoins-banks/)

[2] Putin Advisor Says US Is Using Stablecoins To Devalue Its ... (https://cointelegraph.com/news/us-is-using-stablecoins-devalue-debt-putin-advisor)

[3] Wait for Stablecoins to Whip Up US-China Rivalry (https://www.bloomberg.com/opinion/articles/2025-09-07/stablecoins-are-set-to-whip-up-us-china-geopolitical-rivalry)