You ever get the feeling the world’s changing? Well, here’s a wake-up call, the mighty US dollar, king of the stablecoin block, is about to get whacked, maybe not today, maybe not tomorrow, but soon.
The time is up?
The guy sounding the alarm? None other than Reeve Collins, co-founder of Tether, the OG of dollar-backed crypto coins. Right now, dollar-backed stablecoins, like Tether, USDC, run the show.
They’re the Don Corleone of crypto, the big boss everyone pays their respects to.
The dollar’s been the reserve currency of crypto, as Collins puts it, and that’s kept Uncle Sam’s grip nice and tight on the digital cash racket.
But times are changing, and the dollar’s not the only wise guy in town anymore.
See, Collins is in Dubai, talking with the media, and he’s got a glint in his eye. Another popular crypto site, Cointelegraph asked him, and the answer was rather revealing.
“Yeah, the dollar’s dominant. For now. But new players are muscling in, other currencies, sure, but more importantly, other types of backing.”
So, the stablecoin game is about to get a whole lot more interesting, and the dollar might be yesterday’s news.
Yield competition?
It’s not just about swapping greenbacks for euros or yen. Collins is talking about stablecoins backed by real-world assets, for example money market funds, gold, commodities, even government bonds.
Stuff that actually earns you a return, not just sits there looking pretty.
“When you can back it with money market funds, for instance, that generate a higher yield than T-bills, those will take precedence.”
In other words, if you can make more dough with a gold-backed coin than a dollar one, why stick with the old guard?
He’s not just blowing smoke, either. Collins is working on the Pi Protocol, a new stablecoin project that lets you back your coins with interest-bearing assets.
The logic’s simple, people like making money, and if a stablecoin pays you more, that’s the one you’re gonna want in your wallet.
Power
And just when you think this couldn’t get any more dramatic, in struts Donald Trump. The President’s name is now tied to a stablecoin project, World Liberty Financial. Collins says Trump’s blessing is like opening the floodgates.
“The President of the United States launched a stablecoin. It’s impressive. It lays the foundation for the rest of the world to do it as well.”
If that doesn’t make you sit up and pay attention, nothing will. So here we are, the dollar’s still the boss, but the sharks are circling.
Gold, commodities, bonds, everybody wants a piece of the stablecoin pie. And if you’re still betting everything on the dollar, you might wanna check your rearview mirror.
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