Eight decades of dollar history will be read as a three-act play.
Act i was the Eurodollar-coastal bank deposits that emerged in the 1950s London so Soviet bloc, European exporters, and ultimately every multinational could hold dollars outside US regulation, walking a base of multi-trillion-dollar banking banking.
Law II is the petrodollar. After 1974, OPEC’s decision to pricing crude in dollars was hard-wired global energy demand in the US currency and was given Washington an automatic bid for bills.
John Devadoss will appear in “IEEE X Consensus Research Symposium: What’s next to Agentic AI?“At Consensus 2025 on May 16 and 11:00 am-12: 30pm.
LAW III does not change now. USD-back stabledollars (aka Stablecoins)-chain tokens are fully collateralized by T-bills and cash-have passed $ 230 billion in circulating supply and, for many days, adjust more value than PayPal and Western Union combined. The dollar is back to itself – this time as a Monetary Api: A permission without permission, can be programmed unit that removes seconds for a portion of a cent.
Follow the incentives and the shape of the future will appear. A Lagos merchant can receive the USDC on his phone, skip 20% Naira slippage, and restock the inventory in the same afternoon. A Singapore hedge fund parks are cash in tokenized T-bill vaults that produce 4.9%, then route those dollars to a swap at 8 am new-york time without a corresponding bank. A Colombian gig worker converts wages over the weekend to digital dollars, capital control bypasses, and removed the pesos in an atm-nap of the atm-no-Friday to the lag, no 7% remit fee.
Stablecoins did not replace the banking system; They tunnel around the slowest, most expensive choke points.
Scale begets legitimo. The Genius Act Moving through the US Senate will charter stable-coins that have provided the country across the country and, for the first time, open a path to Fed Master Accounts. Treasury staff modeled a $ 2 trillion stable-coin float of 2028-sufficient to compete throughout Eurodollar’s stock in the early 1990s.
That projection could occur: Tether and Circle’s command of more than 90% of the reserves took place almost completely in the temporary US debt, which means that foreigners effectively holds digitized T-bill to settle for 30 seconds. The impact of the dollar network moves from fast messages to intelligent-contract calls, which expands the hegemony without printing a new note.
However, the stabledollar epoch has no success without risk. Private tokens that wrap sovereignty money raise difficult questions. Who makes the financial policy when a third offshore float lives in intelligent contracts? What is the recession of a Venezuelan family if one gave a black purse list? Is Europe-or the BRICS-will put out a level of dependence at the level of a US-Regulated property? These are management puzzles, but they can be solved if policies treat stablecoins as critical dollars infrastructure, not as speculations that are annoyed.
Playbook is straightforward:
- Imagine Basel-Style capital and Liquidity Rules to those who give.
- Post real-time reserves attentive On-chain So the collateral is transparent by default.
- Mandate inter-operability throughout the blockchain to prevent win-take-all custodianship.
- Expand FDIC-like insurance with tokenized deposits so that end-users enjoy the same safety net as in bank accounts.
Do that, and the United States creates a digital-dollar moat wider than any CBDC rival, including China. Recalling, and release moved to the coast, leaving Washington to the police with a shadow system that was out of control.
The dollar hegemony is always advanced by self-hitting the dominant flow of age trading: the Eurodollars funded by the post-war rebuilding; Petrodollars are lubricating fossil-fuel centuries; Stabledollars are cables of high speed, economics eaten by software. Ten years from now, you don’t See you they; They will only be the water we swim. Your local café will mention prices on pesos or pounds but settle to tokenized dollars under the hood. Brokers will sell “notes” that are actually carrier instruments to be programmed for collateral calls. Payroll will come to a purse with auto-ruptures of savings, investments, and charity gifts immediately removed.
The only open question is whether the United States will call upgrading unintentional birthed. Stablecoins is the fastest growing quasi-SOURIGN ASSET class. Using these serious rules and the third great inventing dollar is writing itself. Ignore them, and the future is still coming – the US is not in the driver’s seat.
