The era of stablecoins is unfolding like the Warring States period, and the century-long battle for stablecoins has begun.
The globalization of currency is irreversible, and the vast majority of national currencies struggle to maintain complete stability over the long term. I have previously written a lot about stability, but ultimately did not find a way to resolve the erosion of the currencies of small economies by stablecoins. When discussing monetary sovereignty, there is a very core issue: the vast majority of countries find it difficult to guarantee the stability of their currencies, while ordinary people hope that their earned wealth can be secured in a stable manner.
The stability of a country's currency relies on its economic structure, fiscal situation, foreign trade balance, and the robustness of its financial system. However, in reality, few countries achieve perfect balance across all levels over the long term. Especially in the future AI economic system, the future industrial structure will pose a devastating challenge to the currencies of small countries.
It can even be said that the so-called monetary sovereignty in the future is more a symbol of national credit rather than a completely independent monetary system. I have seriously and rigorously considered the impacts brought by stablecoins and have not found countermeasures. Even the decentralization of minting rights will make stablecoins more aggressive, as it commercializes minting rights. I am also seeking what to do next based on this.
Perhaps supranational currency is one solution, but supranational currency will face the question of whether it is willing to be accepted, and it cannot be ruled out that more capable individuals will emerge in the future to resolve disputes over "monetary sovereignty."
