US dollar-pegged stablecoins and Bitcoin (BTC) share a “symbiotic” relationship, mutually benefitting from rising adoption, in response to Sam Lyman, head of analysis at Bitcoin Coverage Institute (BPI), a Washington DC-based digital asset advocacy group.
“Bitcoin is useful to the US system as a result of the most important Bitcoin buying and selling pair is BTC/USD,” or Tether’s USDt (USDT) stablecoin, which is backed by money deposits and short-term US authorities debt, Lyman advised Cointelegraph. He added:
“There’s a symbiotic relationship between BTC and the greenback system as a result of BTC is most continuously traded in {dollars}. So, I do see these issues as being mutually reinforcing, which runs opposite to the narrative round BTC that it might truly undermine the greenback.”
He mentioned Bitcoin and dollar-pegged stablecoins share an analogous relationship to the greenback and oil. Beneath the petrodollar system, which started within the early Seventies, worldwide oil gross sales are priced in {dollars}, driving extra demand for the forex.
Lyman urged US lawmakers to proceed growing stablecoin rules launched within the GENIUS regulatory framework, with out deviating from its core rules, to strengthen and shield US greenback hegemony and stay aggressive in geopolitics.
Associated: Stablecoins flip automated clearing home quantity in February
China clamps down on permissionless blockchain tech to push for CBDC
The Folks’s Republic of China has “banned” Bitcoin and stablecoins a number of instances, as a result of each are a “great risk” to the federal government’s capital controls, that are a important element of the Chinese language economic system, Lyman advised Cointelegraph.
“The complete Chinese language economic system is dependent upon capital controls. China is ready to maintain cash inside the nation by stopping its elite from shifting cash overseas,” he mentioned.
Because of this China reaffirmed its stablecoin ban in 2025, selecting as a substitute to launch the digital yuan, a yield-bearing central financial institution digital forex (CBDC) to manage capital flows and seize a bigger portion of the international forex change market, Lyman mentioned.
CBDCs are absolutely programmable and managed by the federal government or the central financial institution issuing the digital fiat forex.
Nevertheless, the bans have failed to really curtail permissionless crypto exercise, together with Bitcoin mining and stablecoin flows to and from China, Lyman mentioned.
Regardless of a blanket ban on Bitcoin mining, Chinese language mining swimming pools management greater than 36% of the mining pool world hashrate, or the overall quantity of computing energy mining swimming pools are contributing to safe the community, in accordance to Hashrate Index.
Journal: Bitcoin vs stablecoins showdown looms as GENIUS Act nears
