Author: Mask
Original Title: US "Beautiful Big Act" About to Pass, Aiming to Vigorously Develop Stablecoins and Promote Federal Reserve Interest Rate Cut
A financial experiment born from the 36 trillion US dollar debt crisis is attempting to transform the crypto world into a "debt absorber" for US Treasury bonds, while the global monetary system is quietly being reshaped.
In the US Congress, a legislative bill called the "Beautiful Big Act" is being rapidly advanced. The latest Deutsche Bank report characterizes it as the United States' "Pennsylvania Plan" for addressing massive debt - by mandating stablecoins to purchase US Treasury bonds and incorporating digital dollars into the national debt financing system.
This bill forms a policy combination with the 'GENIUS Act', which has already mandated that all US dollar stablecoins must be 100% backed by cash, US Treasury bonds, or bank deposits. This marks a fundamental change in stablecoin regulation. The bill requires stablecoin issuers to maintain reserves at a 1:1 US dollar or high-liquidity assets (such as short-term US Treasury bonds), prohibits algorithmic stablecoins, and establishes a dual federal and state-level regulatory framework. Its objectives are clear:
• Alleviate US Treasury bond pressure: Mandate stablecoin reserve assets to invest in the US Treasury bond market. According to US Treasury Department predictions, global stablecoin market value will reach 2 trillion US dollars by 2028, with 1.6 trillion US dollars flowing into US Treasury bonds, providing a new financing channel for US fiscal deficit.
• Consolidate US dollar hegemony: Currently, 95% of stablecoins are pegged to the US dollar. The bill creates a closed loop of "US dollar → stablecoin → global payment → US Treasury bond inflow", strengthening the "on-chain coinage right" of the US dollar in the digital economy.
• Promote interest rate cut expectations: The Deutsche Bank report indicates that the bill pressures the Federal Reserve to cut interest rates to reduce US Treasury bond financing costs while guiding the US dollar to weaken and enhance US export competitiveness.
US Treasury Bond Blockage, Stablecoins Become Policy Tools
[The translation continues in the same manner, maintaining the specified translations for specific terms]Second Layer: Risk Amplification in Decentralized Finance. After stablecoins flow into the DeFi ecosystem, multi-layer leveraging occurs through liquidity mining, lending, and staking. The reStaking mechanism enables assets to be repeatedly staked across different protocols, geometrically amplifying risks. Once the underlying asset value plummets, it may trigger a chain of liquidations.
Third Layer: Loss of Monetary Policy Independence. The Deutsche Bank report directly points out that the bill will "pressure the Federal Reserve to lower interest rates". The Trump administration could indirectly obtain "money printing rights" through stablecoins, potentially undermining the Federal Reserve's independence - Powell has recently rejected political pressure, suggesting no hope for a July rate cut.
More troublingly, the US debt-to-GDP ratio has exceeded 100%, with the US debt's own credit risk rising. If US debt yield continues to invert or default expectations emerge, stablecoins' hedging attributes will be in grave danger.
New Global Chessboard, Blockchain Reconstruction of Economic Order
Facing US actions, the world is forming three major camps:
• Alternative Camp: People in high-inflation countries use stablecoins as "hedging assets", weakening local currency circulation and central bank monetary policy effectiveness. These countries might accelerate developing domestic stablecoins or multilateral digital currency bridge projects, but face severe trade challenges.
And the international system will also undergo transformation: from unipolar to "hybrid architecture", with current reform proposals presenting three paths:
• Extreme Fragmentation: If geopolitical conflicts escalate, it may form divided USD, Euro, and BRICS currency camps, dramatically increasing global trade costs.
PayPal CEO Alex Chriss points out the key bottleneck: "From a consumer perspective, there's currently no real incentive driving stablecoin adoption". The company is launching a reward mechanism to solve the adoption challenge, while decentralized exchanges like XBIT solve trust issues through smart contracts.
The Deutsche Bank report predicts that with the "Beautiful Big Bill" implementation, the Federal Reserve will be forced to cut rates, causing the USD to significantly weaken. By 2030, when stablecoins hold $1.2 trillion in US debt, the global financial system may have quietly completed blockchain reconstruction - US dollar hegemony embedded in code in every blockchain transaction, with risks spreading through decentralized networks to every participant.
Technological innovation is never a neutral tool. When the US dollar dons blockchain's cloak, the old order's game is playing out on a new battlefield!
