Opinion of: Jamie Elkaleh, director of marketing at Bitget Wallet
Stablecoins began as a bypass solution for crypto traders. By tearing the tokens from the US dollar, they have created liquidity on a market that has never closed. In a few years, however, they have exceeded this role. The result is an onchain financial layer where coins caught in dollars fix prices, guarantee standards and risk appetite.
The danger lies here: without the growth of credible and well -regulated alternatives in the Euro, the Yen and the Offshore Yuan, the domination of the US dollar will be locked in the Crypto Foundation for years.
If this happens, liquidity will follow the rates and policies of us, more closely, by amplifying the titles when the commercial treasury jumped and exporting Washington’s policy shocks directly in Defi.
Dollars tokens have already sent tradfi conditions to crypto. The titles figures change each quarter, but the mechanism is stable: the reserves are on the money markets of the American government, so cryptographic liquidity increases and decreases with American rates.
This plumbing is effective and transparent, but concentrates an exposure to macro via the monetary markets of a single sovereign. Treating this dependence as “neutral” is a choice that industry should correct in the market structure that it then builds.
Europe and Japan should transform policy into liquidity
Europe has admired the problem. If Dollar Stablecoins defines the rules of ONCHAIN finance, the euro must appear in the control books, not only in white pods. Eurau is the first test: is the liquidity of the euro in depth and becomes a pair of bases? Alongside the EURC and EURCV comply with Mica, Europe is now plumbing – what it needs is a deliberate market creation to sow Euro books.
The regulators should choose the winners and submit liquidity instead of simply publishing directives – if not “strategic autonomy” becomes a slogan with a BID -K spread.
The European Central Bank has already said that the calm part aloud: the Stablecoin dollarized rails weaken the autonomy of the euro, so the policy must create Euro-native rails.
In relation: The President of the ECB calls to respond to the risks of stablescoins not ue
Japan moves in parallel. The Fintech Monex group is preparing a stablecoin to support the Yen, while Jpyc recently received approval, marking one of the first tokens regulated by Fiat in Asia. This only matters if a JPY token moves funds and payments from suppliers and appears to be deep base pairs on major exchanges. There will remain a pilot comply with strict reserve transparency and a wide distribution through exchanges, PSPs and wallets.
Hong Kong is the test ground for non -USD rails
The new Hong Kong license regime counts because it offers a supervised path to non -USD tokens with reserves, redemptions and enforceable disclosure – exactly the constraints that Europe and Japan need in Asian times.
It starts with the Hong Kong dollar, but the setting can accommodate the Yuan offshore, or CNH, which makes Hong Kong the practical bridge for an offshore-yuan pilot which can be monitored and put on the scale. Success will depend less code and more on politics – the CNH pools are shallow, so an approved CNH token will be a useful corridor until liquidity widens and the coverage becomes cheaper.
What would really change the pair of bases?
The non -USD tokens will only have if they become the units where prices discovery occurs. This means that daily reserve disclosure and independent certificates that meet – or beat – USDT / USDC standards. It also requires an indigenous multichain emission for the settlement without packaging and the hard redemption SLA so that institutions can finance comfortably in euros or in Yen overnight. Exchanges should list non -USD base pairs and direct incentives to them – even if the early differences are wider – so that price discovery occurs outside the dollar.
Europe has the first two parts: a pipeline of regulated transmitters and a central bank openly pleading for Euro rails. Hong Kong provides the third: a place that can authorize and supervise issuers at the service of hours of Asian negotiations, with clear expectations on reserves and driving. A together, these elements can deviate from the onchain monopoly on the dollar without claiming that the dollar disappears.
Overview: rails with several titles
The stables of the dollar do not disappear – and should not. However, a basic layer to a paro would make cryptography more brittle and not more open. Eurau European approval shows how policy can become liquidity; The Japanese license wave adds a regional depth; And the Hong Kong regime provides the test bench to prove if the rails not USD can erase in size.
If Euro and Yen Liquidity consolidates exchanges – with a transparent and approved CNH token which follows – prices, guarantees and financing of onchain will diversify beyond the money markets of a single sovereign, reducing the risk of concentration without sacrifices or composibility speed. The next cycle will reward the issuers and the courts which transform compliance into competitive FX liquidity – and penalize those which reconstruct the domination of the dollar by default.
Opinion of: Jamie Elkaleh, director of marketing at Bitget Wallet.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
