Will Regulated Stablecoins End the Dollar’s Crypto Monopoly? Let’s Talk About It!

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Opinion by: Jamie Elkaleh, chief marketing officer at Bitget Wallet

Stablecoins started as a little hack to make crypto traders’ lives easier. Imagine a token that’s pegged to the US dollar, making liquidity in a market that never sleeps just a tad bit more bearable. Fast forward a few years, and what do we have? A full-blown onchain financial ecosystem where dollar-pegged coins are the bosses – setting prices, collateral norms, and determining just how risky we want our digital lives to be. Well, that escalated quickly.

Dollar tokens have already managed to bring traditional finance (TradFi) conditions into the world of crypto. Every quarter, the numbers change, but the setup? Oh, that’s as stable as your grandma’s ancient rocking chair. US government money markets hold all the reserves, and crypto liquidity moves in sync with US rates. And yes, folks, it’s as riveting as it sounds.

Now, let’s be real: this plumbing may be efficient and transparent, but it also means we’re stuck in the same old system, tied to one sovereign’s money markets. The industry has a choice: do we treat this as a neutral fact, or do we pull our collective heads out of the sand and fix this? The ball’s in our court, people!

Europe and Japan: Time to Show Up

Europe, oh Europe… you’ve been watching from the sidelines long enough. If dollar stablecoins are going to call the shots in onchain finance, then it’s time for the euro to make its grand entrance. No more lurking in white papers. EURAU is the first test: can euro liquidity get deep enough to show up as a base pair? Alongside MiCA-compliant EURC and EURCV, Europe has the infrastructure. Now all it needs is some good old-fashioned market-making.

Regulators: stop just writing guidelines. How about underwriting some liquidity instead? Otherwise, “strategic autonomy” is just another phrase that sounds nice on paper – but when you try to trade it, it has a bid-ask spread as wide as the Grand Canyon.

Oh, and let’s not forget the European Central Bank’s subtle, yet bold declaration: Dollarized stablecoin rails weaken euro autonomy. So, guess what? It’s time to create euro-native stablecoin rails. Who knew policy could sound this urgent?

Japan: Hold My Sake, Here Comes the Yen

Meanwhile, Japan is out here working hard. Fintech group Monex is prepping a yen-backed stablecoin, and JPYC has already gotten approval. Hold on a second… That’s great, but it will only matter if that yen token can actually move remittances and supplier payments. Oh, and let’s not forget it needs to show up on major exchanges with all the bells and whistles. Otherwise, it’ll just be another polite pilot, playing by the rules without making any waves.

Hong Kong: The Test Lab for Non-USD Rails

Now, here comes Hong Kong, our lovable test subject for non-USD tokens. They’ve launched a new licensing regime that offers a supervised path to tokens that actually have enforceable reserves, redemptions, and disclosures. Perfect for the Asian trading hours. It all starts with the Hong Kong dollar, but this framework can also support the offshore yuan (CNH). This is the golden ticket for a CNH token pilot, assuming it gets off the ground without tripping over liquidity issues or, heaven forbid, hedging problems.

What Would Actually Shift the Base Pair?

Here’s the deal: non-USD tokens will only matter if they become the place where price discovery happens. And that means daily reserve disclosures, independent attestations (yes, we’re serious about transparency), and multichain issuance for wrapper-free settlement. We need hard redemption SLAs so institutions can fund in euros or yen overnight without breaking a sweat. Exchanges? Yeah, they should list non-USD base pairs. Even if the spreads are wider at first, let’s move away from the dollar, people.

Europe has the first two pieces of the puzzle: a regulated issuer pipeline and a central bank that isn’t afraid to publicly argue for euro rails. Hong Kong brings the third: a supervised venue to license and oversee issuers during those crucial Asian trading hours. Together, these elements can chip away at the dollar’s grip on the crypto ecosystem. But, let’s not kid ourselves – the dollar isn’t going anywhere soon. Let’s just make it share the spotlight.

The Big Picture: Multicurrency Rails

Look, dollar stablecoins are here to stay. And honestly, that’s fine. But if we keep everything tied to just one currency, crypto will become more brittle, not less. Europe’s EURAU approval is a step in the right direction. Japan’s licensing wave adds regional depth. And Hong Kong? Well, it’s the proving ground for whether non-USD rails can actually work at scale.

Once euro and yen liquidity take root on exchanges, and if we get a solid CNH token in the mix, we can say goodbye to the monopoly of one sovereign’s money markets. The next cycle is going to reward the issuers and jurisdictions that turn compliance into competitive FX liquidity. Those that try to rebuild dollar dominance by default? Well, they’ll just get left behind. Bye-bye, dollar!

Opinion by: Jamie Elkaleh, chief marketing officer at Bitget Wallet.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of CryptoMoon.

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2025-09-11 17:02