PANews reported on June 24 that Yuyuan Tantian published an article titled "Is stablecoin a life-saving pill for the US dollar?", saying that on June 17, local time, the USPANews reported on June 24 that Yuyuan Tantian published an article titled "Is stablecoin a life-saving pill for the US dollar?", saying that on June 17, local time, the US

Yuyuan Tantian: The run on stablecoins will become the spark that ignites a systemic financial crisis in the United States

2025/06/24 21:39
2 min read

PANews reported on June 24 that Yuyuan Tantian published an article titled "Is stablecoin a life-saving pill for the US dollar?", saying that on June 17, local time, the US Senate passed the "Guidance and Establishment of a National Innovation Act for Stablecoins in the United States" with 68 votes in favor and 30 votes against, formulating regulatory rules for stablecoins pegged to the US dollar. The bill requires that for every $1 of stablecoin issued, there must be an equivalent amount of highly liquid and safe assets as support, and that stablecoins be included in the anti-money laundering and financial regulatory system. Analysts believe that stablecoins are expected to ease the pressure on US debt and deepen the influence of the US dollar in the global financial system, but they also face systemic risks and regulatory challenges. If users collectively demand redemption, Tether must immediately come up with a large amount of cash, but the US Treasury bonds it holds are not readily convertible assets. Once liquidity problems arise, it may lead to non-payment, just like a bank run, and become a hidden danger of triggering a systemic financial crisis. If it is not designed properly, and instead its risk attributes are ignored and it is used as a leverage tool to increase debt, delaying the resolution of the dollar's own substantive problems, or even used as a "sickle" to reap the monetary sovereignty of other countries, it will undoubtedly lead to the accumulation of risks and backfire on the operation of the U.S. financial system.

It is reported that Yuyuan Tantian is a new media account under China Media Group, aiming to report major international events.

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