I have to admit, Trump is indeed a financial trading "genius"; he came up with this thing called a stablecoin.

First, let's take care of friends who are not familiar with the event and explain what exactly happened.
Brothers can take a look at my latest statistical data (chart), the scale of America's debt has already surpassed 37 trillion dollars, what does this number mean?

Let me put it this way,
Even if the United States disbands its military on the spot now,
Cut all military spending,
Use all the saved money to pay off debts.
Not enough to repay the interest on U.S. national debt.

Friends who often borrow money are well aware that there are generally only three ways to solve debt problems without repaying the money.

🚩The first and simplest option is to eliminate all creditors. The Americans considered this plan, but later assessed the balance of power and found the risks too great, ultimately having to give it up.

🚩The second method is to blow up the creditors' economy, then they take the opportunity to buy the dip and use the harvested wealth to fill the holes in U.S. Treasury bonds. However, after playing this game, they find that our economy is very strong, and this path also seems to be unfeasible.

🚩In the end, there was no choice; the Americans, pushed to the wall, could only choose to take the third path, which is their ultimate trump card — stablecoin.

So what is a stablecoin? Essentially, it is a type of digital currency that relies on blockchain technology *, with an exchange rate of 1:1 with the US dollar. Friends who have been to an arcade should understand that when you go to an arcade to play games, one coin can be exchanged for one game token. A stablecoin is comparable to a game token, except that the scope of the arcade has expanded to the entire world.

What is the content of the stablecoin bill?
The general idea is that if you are a U.S. company wanting to issue a stablecoin, you must first put up an equivalent amount of U.S. dollars in cash or purchase U.S. Treasury bonds as collateral. This is similar to the Bretton Woods system during the gold standard era, where for every portion of dollars issued, Americans had to reserve a large amount of gold in the treasury. The only difference this time is that the currency being issued has changed from dollars to stablecoins, and the anchor item for the currency has changed from gold to U.S. dollars and Treasury bonds.

In this way, the stablecoin is linked to U.S. Treasuries. When you buy stablecoins, it is equivalent to indirectly supporting U.S. Treasury bonds. Previously, Trump was most worried about the large number of U.S. Treasuries maturing. Now, both China and Japan, the two largest creditors, are selling U.S. Treasuries. If there are no buyers for U.S. Treasuries in the future, then the U.S. debt crisis will explode.

So in order to avoid such situations, he came up with the stablecoin legislation. With this legislation, anyone in the world who buys stablecoins is essentially buying US Treasury bonds in a disguised manner. In other words, everyone in the world is using their wealth to take on America's debt.

Don't think it has nothing to do with you. The dollar is the world's currency, and once the floodgates of this massive money printing are opened, the money in our hands will also depreciate. As for the extent of the depreciation, it will depend on how fast Trump is indirectly printing money.

I know that some people will question this, so why should we buy stablecoins?

Let's first talk about the first group, American companies. Why do they want to issue stablecoins?

As we all know, buying US Treasuries yields interest. At the current interest rate, it’s around 5% per year. So, suppose an American company issues 1 million dollars in stablecoin, and simultaneously holds 1 million dollars in US Treasuries in its treasury, then it can earn 50,000 dollars in interest in a year. If it issues 100 million, the interest would be 5 million dollars, which means earning money without doing anything. This is the biggest motivation for them to issue stablecoins.

Moreover, he doesn’t even need to spend money to buy U.S. Treasury bonds, because as long as someone is willing to buy his 1 million dollars of stablecoin, it is equivalent to global investors pooling their money together to help him buy U.S. bonds, and then all the interest goes directly into his pocket. Who wouldn’t want to engage in such a highly profitable business?

I know someone will say again, then why would global investors buy his stablecoin? Can't I just not buy it!

Those who can think of this are all smart people, because you can see at a glance the key to the problem, which is why the whole world should buy this American stablecoin? Can't everyone see that this is a way to harvest the leeks?

No, there are many smart people in the world. Everyone can understand a scheme like Trump's, which is just passing the buck. However, due to three main reasons, everyone has to buy this stablecoin.

🚩First of all, the first reason is that stablecoins are equivalent to certificates for cryptocurrency trading.

What does it mean? Nowadays, many people around the world are buying Bitcoin and some virtual currencies, of which 90% need to be settled using stablecoins. It's like when you want to buy clothes on Taobao, you need to download Alipay first. Stablecoins are like Alipay in the virtual currency market; they are a prerequisite for your transactions. If you want to buy coins, you need to spend money to buy some stablecoins.

🚩Then there is the second reason, stablecoins are actually a lifeline for some countries.

For example, Argentina, due to the chaos in the country, now has an annual inflation rate of 100%. For Argentinians, if no action is taken, their wealth will shrink by more than half each year. So how can this problem be solved? The answer is to frantically buy stablecoins, as stablecoins are linked to the US dollar and US Treasury bonds, which to some extent have a value-preserving function and can prevent significant depreciation of the wealth in hand.
Since the U.S. interest rate hikes after the Russia-Ukraine conflict in 2022, many countries around the world have seen their currencies depreciate drastically. They all want to use stablecoins to combat currency depreciation, which is also a significant reason for the continuous surge in gold and bitcoin prices, in order to counteract depreciation risks.

🚩Finally, the third reason is international trade, using stablecoins is more cost-effective.

For example, let me give you a case. You are a Chinese company, and now you need to make a payment to a client in Mexico. If you use traditional bank transfer, it takes 3 days to arrive and the fee is 5%. However, if you use stablecoin, it can arrive in just 10 seconds, and the fee is only 0.1%. If it were you, which method would you choose?

It is precisely for this reason that a large number of enterprises have actively chosen stablecoins to save costs. According to the data I found, the proportion of stablecoins in cross-border payments will reach an astonishing 37% by 2025.

Currently, the world's largest stablecoin USDT holds 120 billion USD in US Treasury bonds, surpassing the scale of the German central bank. According to this trend, it is expected that by 2030, the scale of stablecoins will reach 2 trillion USD, which is equivalent to a 1.6 trillion USD influx into US Treasury bonds globally, just enough to cover all the debt added during Trump's term.

This is the real purpose behind Trump's launch of various special Trump coins, Melania coins, and the stablecoin bill: one is to profit for his family, with reports suggesting they have already made hundreds of millions of dollars, and the other is to find ways for the whole world to take on dollar debt.