(Source: "China Economic Times" 2025-06-11)
In 2024, the global crypto-asset landscape will usher in historic changes. The U.S. Securities and Exchange Commission has officially approved the first batch of Bitcoin spot index funds (ETFs), marking the first time that a sovereign financial system has accepted native w88 online live casino assets into the capital market on a large scale. At almost the same time, the European Parliament also passed the "Crypto-Asset Market Supervision Act" with a high vote, setting up unified legal standards for stablecoin issuance, trading, reserve management, etc. for the first time. In 2025, the new U.S. government will take even more frequent actions. This series of actions sends a clear signal to the world: Cryptocurrency is no longer a fringe technological innovation, but a new variable that has entered the core of U.S. national strategy and the international financial system.
The challenges and impact of encrypted w88 online live casino currency on global financial governance are now far from just a technical or speculative issue, but are related to profound changes in sovereign credit, the future shape of the monetary system, and the global governance model.
You should see the positive side of cryptocurrency
Although the rapid development of encrypted w88 online live casino currencies has posed several major challenges to global financial governance, we should also see the huge opportunities it brings, especially in terms of financial inclusion, market efficiency, innovation incentives, etc. Currently, global regulators are generally concerned about the risks and regulatory difficulties brought by encrypted w88 online live casino currencies, such as the high volatility of the encrypted w88 online live casino currency market, contagion, money laundering and terrorist financing, capital flight, etc. However, cryptocurrency is a technological innovation that has its positive implications. The positive significance that encrypted w88 online live casino currency, especially blockchain technology, brings to the financial system is at least reflected in the following three dimensions.
First, encourage innovation and competition.Fierce competition in the field of encrypted w88 online live casino currency has driven the rapid iteration of technology. For example, after Ethereum, emerging public chains such as Solana (SOL) and Sui have emerged one after another, taking the lead in terms of blockchain performance, transaction throughput and transaction speed. This competition not only accelerates the evolution of the underlying technical architecture of the blockchain, but also promotes the diversified development of the global w88 online live casino economic ecology. It is worth noting that this kind of innovation is not limited to the field of financial technology, but also shows extensive cross-border diffusion effects. For example, the original technical design of Ethereum was intended to realize the concept of "currency denationalization" proposed by economist Hayek through programmable smart contracts - any institution or individual can issue its own w88 online live casino currency and screen out better currency forms that can maintain value through free market competition. However, with the evolution of the ecosystem, Ethereum's smart contract functions have been rapidly applied to many fields such as w88 online live casino collectibles and the Metaverse, giving rise to a decentralized "on-chain w88 online live casino asset market." This trend shows that technological breakthroughs in encrypted w88 online live casino currency are actually penetrating into wider application fields and becoming a key engine to promote the next round of w88 online live casino industry revolution.
The second is financial inclusion.Due to cost, risk control and other reasons, it is difficult for the traditional banking system to cover the vast number of low-income groups and remote areas. Blockchain technology lowers the threshold for financial services, allowing anyone with a smartphone in the world to enjoy financial services equally, greatly promoting the accessibility of finance. This is particularly evident in areas lacking traditional financial services such as Africa, South Asia, and Latin America. With the continuous advancement of blockchain technology, the transaction costs and operation and maintenance thresholds of encrypted w88 online live casino currencies have been significantly reduced, which has brought new possibilities for the internationalization of the RMB. If our country can launch low-cost, localized blockchain financial services based on w88 online live casino renminbi, it will have the opportunity to achieve international breakthroughs in "rural areas surrounding cities" in these areas. By building a w88 online live casino RMB payment system in countries with weak basic finance, unstable legal currency, and limited application of the US dollar, it can not only provide local residents with a stable and efficient means of payment and stored value, but also gradually form a stickiness to the use of RMB, expand the RMB's influence in the international market, and seize the initiative in the future w88 online live casino financial era. Through the "rural surrounding cities" model, a new path is opened up that is different from the traditional expansion logic of the US dollar and the euro.
The third is to improve market efficiency.The decentralized features of blockchain have greatly improved the efficiency of market operations. The decentralized financial platform directly connects the supply and demand of funds through smart contracts, avoiding the cost of intermediate links and significantly improving the efficiency of fund allocation. Compared with robots and large language models, my country's technological innovation in the field of blockchain is significantly lagging behind. The application and technological innovation of encrypted w88 online live casino currencies have lagged behind the United States in some areas. This technological backwardness may affect the country's financial technology competitiveness. However, these opportunities brought by cryptocurrency are not equally unleashed in all countries. The dividends of technology-driven innovation often benefit developed economies with strong financial infrastructure first. For emerging economies with weak financial systems and limited governance capabilities, encrypted w88 online live casino currencies may become a new source of risks that impact the existing monetary system. As global w88 online live casino assets rapidly penetrate and stablecoins and encrypted w88 online live casino currencies become means of cross-border transactions and stored value, fragile economies that originally relied heavily on legal currencies are facing an increasingly serious problem of the loss of monetary sovereignty. In other words, a “w88 online live casino divide” is opening up between global financial technology changes and local financial governance capabilities. This gap is being reflected in the form of "currency substitution" in many developing countries.
The complex relationship between stablecoins and US dollar hegemony
Stablecoin is an encrypted w88 online live casino currency. On the one hand, the U.S. dollar stablecoin system strengthens the global status of the U.S. dollar, allowing the U.S. dollar to further penetrate into emerging economies through stable coins, strengthening the "dollar hegemony"; on the other hand, these blockchain-based U.S. dollars are separated from the traditional U.S. regulatory system, but add endogenous instability factors to the U.S. dollar system.
This is mainly because centralized stablecoins are usually issued based on the "100% reserve" principle, that is, each stablecoin circulating on the chain (USDT and USDC are the two stablecoins with the largest market share) is theoretically supported by equivalent low-risk U.S. dollar assets (such as U.S. dollars, short-term U.S. debt, commercial paper, etc.). This “on-chain w88 online live casino dollar” model allows stablecoins to be deeply linked to the U.S. money market. Multiple studies have found that the issuance and destruction of stablecoins has a significant positive correlation with the dynamics of the U.S. short-term financing market, especially in the commercial paper market. The adjustment of stablecoin reserve assets has had a significant marginal impact on these markets.
This means that the expansion and contraction of the stablecoin issuance scale will not only reflect the demand fluctuations in the cryptocurrency market, but may also adversely affect the stability of the U.S. currency market. Once a large-scale on-chain redemption or run occurs, stablecoin issuers may be forced to sell short-term U.S. debt or bill assets they hold, resulting in a liquidity impact in the off-chain market. This mechanism not only strengthens the U.S. dollar system and provides new global financing channels for the U.S. government to issue government bonds and other financing activities, but also makes it a risk amplifier for the U.S. dollar system.
This characteristic makes stablecoins not only a tool to strengthen the hegemony of the US dollar, but also a "double-edged sword" for the US dollar system. Our country should pay close attention to this evolution, and especially pay attention to participating in the establishment of a global stablecoin regulatory framework in international governance to avoid passively bearing potential risks.
As the volume of stablecoins expands, its marginal impact on global U.S. dollar liquidity is also rising rapidly, thereby creating potential spillover risks to the financial markets of various countries. This cross-market, cross-sovereignty, and cross-platform form of financial assets is constantly blurring the traditional boundaries of monetary policy and the division of regulatory authority. Especially with the U.S. dollar as the anchor asset, stablecoins not only export the circulation capacity of the U.S. dollar, but also transmit the uncertainty of U.S. policy. This impact has long gone beyond the regulatory capabilities of a single country, and has instead posed a new challenge to the stability and governance framework of the global monetary system. In this context, how to promote the construction of an inclusive, coordinated and enforceable global w88 online live casino currency governance mechanism in an environment of high geopolitical tension and increasingly scarce global consensus has become an unavoidable and important issue.
Unbalanced development may bring about currency substitution risks and other issues
Due to insufficient financial governance capabilities and violent exchange rate fluctuations in emerging economies, encrypted w88 online live casino currencies have quickly become the mainstream financial tool for young people, and there is an obvious trend of "dollarization" or "stable currency". The study found that exchange rate volatility showed a significant positive correlation with the use of stablecoins. In countries such as Nigeria, Argentina, and India, more and more residents choose to use stablecoins to replace their national currencies. This is not only speculation, but also a rational response to the loss of the purchasing power of the domestic currency and policy failure.
Fundamentally, currency substitution reflects the fragility of the country’s monetary system and the failure of financial governance. Capital controls implemented by the government, severe inflation, currency depreciation and other factors continue to push residents to find more stable, convenient and credible means of storing value. Therefore, while cryptocurrencies drive financial inclusion, they also pose significant challenges to monetary sovereignty. Stablecoins, in particular, are often anchored to strong sovereign currencies such as the U.S. dollar, which actually forms an implicit output mechanism for a “w88 online live casino dollar.”
In other words, encrypted w88 online live casino currencies and stable coins not only fill the gaps in traditional financial services at the technical level, but also gradually assume core financial functions such as value storage, cross-border payment, and asset hedging at the functional level. With the popularity of such "technology-neutral" tools around the world, currency issuance rights and value anchoring mechanisms are gradually breaking away from the control of traditional national borders and entering the competition track of platformization and de-sovereignty. This has caused profound changes in the definition of monetary sovereignty: it is no longer just the exclusive power of a country's central bank, but is shaped by factors such as algorithmic governance, cross-border platforms, technical standards, and geopolitical differentiation.
Exploration of global governance paths in a geopolitically fragmented environment
Hong Kong, China is also exploring the supervision, trading and regulations of encrypted w88 online live casino currency assets. In 2024, the Securities and Futures Commission of Hong Kong, China, officially launched the virtual asset trading platform licensing system and took the lead in approving the first batch of licensed exchanges, marking a substantial step in the direction of "legalization, institutionalization, and regulation of crypto assets" in Hong Kong, China. Immediately afterwards, the Hong Kong Monetary Authority issued the "Opinion Letter on the Regulatory Framework for Stablecoins", proposing a series of regulatory requirements for issuers of stablecoins anchored to legal currencies such as capital, reserve audits and transparent disclosure. Hong Kong, China also announced that it will promote the w88 online live casino Hong Kong dollar (e-HKD) pilot program and carry out the "w88 online live casino Currency Bridge" (mBridge) multilateral central bank w88 online live casino currency cooperation test with the United Arab Emirates, Thailand, Singapore and other countries, demonstrating its strategic layout of creating an "Asia Crypto Financial Hub". In May this year, the Legislative Council of Hong Kong, China, passed the Stablecoin Bill on the third reading, making Hong Kong the first jurisdiction in the Asia-Pacific region to establish a stablecoin licensing system.
The core problem of global governance of encrypted w88 online live casino currencies lies in geopolitical competition and fragmentation. w88 online live casino currency governance can follow historical experience. First, we can start from the “intersection of interests” to avoid excessive ideologicalization. For example, the interests of all countries are highly consistent in cross-border supervision of stable currencies, combating terrorist financing and money laundering. This common interest basis may become an entry point for major countries such as China and the United States to carry out practical cooperation. The second is to try to build a more flexible governance structure. It does not have to force the formation of a unified global framework, but allows countries to implement differentiated supervision based on minimum global standards to form an international cooperation model of "bottom line governance". Third, mutual trust can be gradually accumulated and the difficulty of cooperation can be reduced through informal dialogue mechanisms, academic exchanges and cooperation between think tanks.
(Author: Deng Jun: Vice President of China w88 casino of Finance, w88 casino; Zhang Shuyu: Associate Professor of w88 casino of Economics, Beijing Technology and Business University)
Attachment: Original link:https://jjsb.cet.com.cn/show_538938.html
