You Won’t Believe What Happens When Stablecoins Ditch the Dollar! 🇸🇬💸

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Somewhere out there, beyond the prying eyes of the US Treasury (not that easy, given how big their spectacles are these days), governments far and wide — such as the perpetually tidy Singapore — are glancing enviously at stablecoins that don’t worship at the altar of the Almighty Dollar, said Fireblocks’ head conjurer of policy, Dea Markova, while whispering to CryptoMoon at Token2049. Yes, apparently, not every country wants to peg its financial destiny to the same currency used by the average American to buy a suspiciously large soda.

According to Markova (who is definitely not being paid per metaphor), this is less about economics and more about, well, keeping score. “It’s all about sovereignty,” she declared, as if declaring something makes it so. She compared the current dollar-stablecoin dominance to that time when countries realized Visa and Mastercard weren’t there for the scenic boat rides. “The same kerfuffle is brewing with stablecoins,” she said, “except the stakes are, for now, somewhere between ‘biscuit tin’ and ‘small plate of biscuits’.” National pride, apparently, comes with a fluctuating budget.

You think the bureaucracy would stop there? Please. Markova claims European regulators are already clenching their collective jaws over the near-universal dominance of dollar-pegged stablecoins. “It’s compliant! It’s regulated! It’s still giving them migraines.” Apparently, you can follow every rule in the EU book and still end up chewing aspirin by the handful. 😵‍💫

Meanwhile, the European Central Bank has donned its most official-looking suit and is now hosting PowerPoint presentations about the urgent need for a digital euro. Their reasoning? Too many dollars sloshing about in the euro-zone could, theoretically, make the place smell faintly of cheeseburgers and freedom, and nobody wants that.

As of April 29, even the Bank of Italy has piped up, publishing a report (which is what central banks do instead of sending snarky tweets) that dollar-backed stablecoins might be a bit too fond of American Treasury bonds—those delightful IOUs that fill the void where Italian espresso should be.

If you were hoping that stablecoins would offer a symphony of global currencies, prepare for disappointment. Tether’s USDT and Circle’s USDC together make up almost all of the market cap for these digital tokens. In fact, of the top 10, every single one is snuggling up to the dollar like it’s a hot water bottle on a cold winter’s night. The rest of the world’s currencies may as well be Monopoly money at this point. 🤑

Markova can’t help but notice the déjà vu here — governments vs payment giants, but this round, instead of plastic cards, we’ve got digital tokens. The stakes may be smaller, but the hand-wringing is just as serious.

UAE: The Cool Kid of Regulation 😎

Now, if you want to see governments thinking outside the sandbox, look no further than the United Arab Emirates. According to Markova, Abu Dhabi is out-regulating everyone — in the least regulatory way possible. Fancy issuing a stablecoin? No need to book a local office or claim residency. The approach is: “We’ll scrutinize those stablecoins from afar, thank you, then decide if we’ll let our shops stock them on the shelves next to the camels and expensive wristwatches.”

Markova approves: “It’s a far more reasonable approach to giving businesses access to global liquidity and payments. And, presumably, fewer government officials sobbing into paperwork.”

Abu Dhabi has even given Tether’s USDT the thumbs-up as a legitimate ‘virtual asset’. Then, just as the confetti was settling, Circle’s USDC also got the nod of approval. Not to be left out, local institutions are busy brewing up a dirham-backed stablecoin, just to show they’re not all about the dollars. So, if the world’s currencies were at a party, let’s just say the UAE is the one turning up with something interesting in its punch bowl. 🥳

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2025-04-30 21:58