Stablecoins Spark Global Race to Redefine Money’s Future

The founder of BitMEX, Arthur Hayes, has suggested that the ongoing bull run in the cryptocurrency market may extend beyond its current expectations, potentially reaching as far as 2028. His prediction is grounded in the rapid growth and increasing adoption of stablecoins, which he views as a critical factor in driving broader crypto adoption and financial inclusion.

Stablecoins—digital tokens pegged to traditional fiat currencies like the U.S. dollar—have seen remarkable expansion in recent years. The U.S. Congress passed the GENIUS Act in late July 2025, a landmark piece of legislation aimed at regulating the $288 billion stablecoin sector. This law has not only reshaped the regulatory landscape in the U.S. but also triggered a global response, particularly in the European Union. The EU, long cautious in its approach to digital currencies, has been compelled to accelerate its plans for a digital euro. European officials are now considering the issuance of a digital euro not just on private infrastructure but also via public blockchains like Ethereum and Solana, a shift that reflects the urgency created by the U.S. regulatory move [4].

The European Central Bank (ECB) has been evaluating the technological and strategic implications of this shift. Previously, the ECB leaned toward a private, centralized system for the digital euro, citing privacy and security concerns. However, the passage of the GENIUS Act has prompted a reevaluation of these assumptions. The ECB now appears open to decentralized networks that could enhance the euro’s global competitiveness and ensure its relevance in an increasingly digitized financial world. This change in strategy highlights the geopolitical and economic stakes involved, as the EU seeks to protect the euro’s position in global markets and reduce dependency on U.S. dollar-denominated stablecoins [6].

In parallel, Hong Kong has also taken steps to position itself as a hub for Web3 innovation. The Hong Kong Web3 Blueprint Report, released in 2025, outlines a roadmap to accelerate blockchain development in the region. Hong Kong's regulatory framework for stablecoins, which took effect in August 2025, aligns with the broader global trend of establishing clear guidelines for digital currencies. The report emphasizes collaboration between the public and private sectors to foster innovation while ensuring market integrity and consumer protection [2].

Arthur Hayes’ forecast of a crypto bull run extending into 2028 hinges on the continued growth and integration of stablecoins into global financial systems. He argues that stablecoins are not only facilitating faster, lower-cost cross-border transactions but also enabling broader participation in the digital economy. As governments and institutions adapt to this evolving landscape, the competitive advantage of digital currencies backed by stable assets will likely become more pronounced. This development could further solidify the role of cryptocurrencies in everyday transactions, particularly in markets where traditional banking services are limited [1].

The potential adoption of a digital euro on public blockchains could also have significant implications for Ethereum and Solana, two of the leading blockchain platforms. Increased adoption by central banks could enhance the utility and liquidity of these networks, attracting both institutional and retail investors. The EU’s decision to explore decentralized infrastructure for its digital currency reflects a broader shift in global attitudes toward blockchain technology. While challenges such as privacy and security remain, the strategic benefits of interoperability and cross-border efficiency are compelling [1].

As the global race for digital currency leadership intensifies, the U.S. and China remain key players. China’s digital yuan pilot, launched in 2019, has positioned the country as a leader in central bank digital currency (CBDC) development. However, the U.S. stablecoin legislation and the EU’s response suggest that private-sector innovation is now playing a more prominent role in shaping the future of digital money. Hayes’ prediction of a prolonged bull run underscores the growing influence of stablecoins and the potential for blockchain technology to redefine global financial systems [5].

Source:

[1] EU Races to Launch Digital Euro After U.S. Genius Act (https://www.bitget.com/news/detail/12560604925782)

[2] The US GENIUS Act and Hong Kong Stablecoins (https://www.jdsupra.com/legalnews/regulatory-ramblings-episode-76-the-d-82386/)

[3] Crypto groups clash with banking associations over US Genius Act (https://www.mlex.com/mlex/articles/2379435/crypto-groups-clash-with-banking-associations-over-us-genius-act)

[4] U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro (https://www.coindesk.com/policy/2025/08/22/u-s-stablecoin-law-jolts-eu-into-rethinking-digital-euro-strategy-ft)

[5] Stablecoins could transform how we exchange money. The ... (https://www.cbc.ca/news/business/china-us-stablecoin-global-economy-1.7615601)

[6] EU speeds up plans for digital euro after US stablecoin law (https://www.irishtimes.com/business/2025/08/22/eu-speeds-up-plans-for-digital-euro-after-us-stablecoin-law/)