Former Vice Minister of Finance Zhu Guangyao: The United States is trying to initiate the third phase of the Bretton Woods System using stablecoin.

robot
Abstract generation in progress

[Former Vice Minister of Finance Zhu Guangyao: The U.S. is trying to initiate the third phase of the Bretton Woods System with stablecoins] Regarding the impact of digital money, especially stablecoins, on the global monetary system, former Vice Minister of Finance Zhu Guangyao stated at the 2025 China International Issues Forum "World Order and China’s Foreign Strategy in a Turbulent Era" held on June 26 that the U.S. is attempting to launch the "third phase" of the Bretton Woods System by promoting stablecoins to maintain and consolidate the global dominance of the U.S. dollar. He analyzes that against the backdrop of the current Bretton Woods System (the US dollar pegged to oil) being difficult to sustain, the United States is facing enormous pressure from high national debt. To this end, the US has recently adopted a series of fiscal and financial strategies, including: Buyback of Treasury Bonds: The Ministry of Finance has taken action to buy back Treasury bonds to alleviate pressure. Adjusting Bank Regulations: The Federal Reserve relaxes regulatory requirements on U.S. Treasury securities held by banks, releasing a substantial amount of liquidity. Reassessing Gold Reserves: Adjusting the accounting method for gold could potentially release a huge "book value." Strongly Promote Stablecoin Bill: The US Senate has passed the stablecoin bill, and officials such as Trump have made it clear that dollar-pegged stablecoins will serve as a "multiplier" for the strength of the dollar, expanding the use of the dollar globally while lowering government borrowing costs. Zhu Guangyao emphasized that this US dollar stablecoin will be a "strongly centralized" product pegged to dollar assets on a 1:1 basis and subject to strict US regulation, rather than a victory for decentralized finance. He urged countries to pay close attention to this strategic evolution and take strong measures to address its challenges to the global monetary landscape.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)