Keep the ponzi scheme going -------------> Stablecoins

Editor's note: What seems to be transpiring here is that the New York Fed and the Federal Reserve through stablecoins along with the US Treasury, are now "tendering for 8 billion global citizens through the currency." Global citizens jacked into the system through their smart phones, payment platforms like Google Pay and Apple Pay will redirect people off their national currencies onto stablecoins moving away from banks in respective countries to allow people to put their money in stablecoins which finances the US government. What this has been referred to is the US is building a planetary credit system.

News update on stablecoins for 1 September 2025: Economist warns of a taxpayer bailout of stablecoins; is this fear-mongering to suit a Globalist agenda?

What people have to understand is that stablecoins are a subset of cryptocurrencies. A stablecoin is one specific cryptocurrency like tether for example. The defining feature of a stablecoin is its design to maintain a stable value, by pegging it to an external asset (US Treasury bonds). This is what sets stablecoins apart from volatile cryptocurrencies like bitcoin. Stablecoins, particularly those pegged to the US dollar, are increasingly being discussed as a potential component of a global credit system, with implications for US government financing under the GENIUS Act. The core of this idea lies in the way stablecoins are backed. To maintain their peg to the US dollar, most stablecoin issuers (see list of issuers below) hold reserves of highly liquid, low-risk assets. A significant portion of these reserves are US Treasury securities, particularly short-term T-bills, notes and bonds (all of which must have a maturity date of 93 days or less).

BlackRock, through its various divisions like the BlackRock Investment Institute, regularly comment on the market of stablecoins and their regulatory landscape. BlackRock views stablecoins as a key component of the future financial system. They have specifically noted that recent US legislation, such as the GENIUS Act (please read The GENIUS Act and Its Implications for Financial Transaction Freedom), solidifies the role of stablecoins and could reinforce the US dollar's dominance by creating a global payment ecosystem based on dollar tokenization. BlackRock sees the growing demand for stablecoins as a driver for new purchases of US Treasury bills (bills are not bonds, they are a type of US Treasury security).  

 

The entire premise behind stablecoins as the stablecoin market grows, is to increase the demand for US Treasuries to back those stablecoins. This increased demand as claimed "can help the US government finance its debt at potentially lower borrowing costs." Some projections suggest "this demand could add trillions of dollars to the Treasury market in the coming years." The big problem here is that the most common stablecoins (like Circle and Tether) are pegged to the US dollar and are backed by reserves that are largely composed of US government debt, specifically short-term Treasury bills. The argument is that this creates a direct, symbiotic relationship with the central banking system. Stablecoins are a way to perpetuate US government debt. The central banking system, which can create money out of thin air, is seen as the ultimate source of this debt. The stablecoin ecosystem, therefore, is not an alternative to central banking, but rather a mechanism that facilitates its expansion and profits from it. The system is sustained by a continuous flow of new government debt, which is bought by stablecoin issuers. This new debt is what provides the "backing" for the new stablecoins entering the market.

The dominance of US dollar-pegged stablecoins (which account for over 99% of the market) helps to extend the US dollar's influence into the global digital realm. It is simply a continuation of the ponzi scheme under a new name with a digital structure. This would reinforce the dollar's role as the world's reserve currency and "strengthens American financial leadership globally." American financial leadership is the perpetuation of continuing debt to run the US government.

Stablecoins can facilitate faster, cheaper, and more efficient cross-border payments with this coming new "global financial infrastructure." This could create a new financial infrastructure where the US dollar, in its stablecoin (s) form, is the primary medium of exchange. This would allow the US to exert influence over a global digital credit system without the need for a central bank digital currency (CBDC). The GENIUS Act legislation aims to bring clarity and stability to the stablecoin market. It does not create a single stablecoin. Its purpose is to define a legal category called "payment stablecoins" and then set rules for any company that wants to issue one. 

The GENIUS Act creates a framework that dictates who can issue a stablecoin (e.g., regulated banks or approved non-bank entities), what assets those stablecoins must be backed by (US dollars or short-term Treasury bills), and how issuers must be transparent about their reserves. Howard Lutnick, who has been confirmed as President Donald Trump's Commerce Secretary, has a long and well-established involvement with stablecoins, particularly with the largest stablecoin, Tether (USDT). The stablecoin market is dominated by a few key players, but there's a growing list of issuers, including both cryptocurrency-native companies and traditional financial firms. Here are some of the most prominent stablecoin issuers and their respective coins:

Tether (USDT)

Circle (USDC)

MakerDAO (DAI)

Pax Dollar (USDP)

PayPal USD (PYUSD)

First Digital Labs (FDUSD)

Ethena Labs (USDe)

Gemini Dollar (GUSD)

Ripple

These issuers, particularly Tether and Circle, collectively account for the vast majority of the stablecoin market capitalization and trading volume. They are the key drivers of the stablecoin cryptocurrency ecosystem and are at the forefront of its evolution and interaction with both the crypto and traditional financial systems. BlackRock has a significant partnership with Circle, the issuer of the USDC stablecoin. Under this agreement, BlackRock acts as the primary manager for a substantial portion of Circle's US dollar-denominated reserves. It has been recently discovered BlackRock's Larry Fink has been named the new chairman of the World Economic Forum (WEF). Howard Lutnick who was at Cantor Fitzgerald, acts as a custodian for a portion of tether's reserves. This means that a significant amount of the US Treasury bills and other assets that back the Tether stablecoin are held at Cantor Fitzgerald. This is the reason Lutnick is the US Commerce Secretary. Lutnick is the most prominent advocate for stablecoins in traditional finance, and his confirmation as Commerce Secretary brought his deep involvement with the industry into the center of the US government's policy on digital assets.

 

The US government has been actively working on a regulatory framework for stablecoins. The "Guiding and Establishing National Innovation for U.S. Stablecoins Act" (GENIUS Act) is a key piece of legislation that aims to create clear rules for stablecoin issuance, requiring them to be backed 1-to-1 with US dollars or low-risk assets like Treasury bills. This legislation is seen as a way to legitimize the stablecoin market and ensure its stability, while also "providing a steady source of demand for government debt."

The shift of funds from traditional bank deposits to stablecoins could reduce banks' low-cost funding sources and this is going to have consequences for banks. It could lead to higher borrowing costs for households and businesses, potentially slowing economic activity. The potential for "runs" on stablecoin issuers, if they are perceived as not having adequate reserves, is a major concern that could cause financial instability. Regulations are being developed to mitigate this risk.

Stablecoins can and will be used for money laundering and other illicit activities, and regulators are working to ensure that stablecoin issuers comply with anti-money laundering and counter-terrorism financing standards.

The US is not alone in this digital space as other nations are in on the competition. Other nations, such as China, are also developing their own digital currency strategies and regulatory frameworks for stablecoins, creating a race to shape the future of global digital finance. The US is positioning its dollar-pegged stablecoins as a way to maintain its debt-based financial dominance.

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The US Treasury Department is extremely desperate for any morsel it can find to put toward the $36.7 trillion national debt:

Venmo to Pay the National Debt?

Peter Thiel is involved in stablecoins through several of his investments and ventures. While he may not be a direct founder of a stablecoin, his influence and financial backing in the cryptocurrency space have a clear connection to stablecoin development and adoption. Thiel's involvement in stablecoins is not through direct creation but rather through strategic investments in companies that use or are built on the underlying technology that powers stablecoins, as well as through his support for a regulatory environment that enables their growth. Several news articles mention a link between Lutnick's company, Satellogic, and Thiel's company, Palantir Technologies, as a "strategic partner."

[Lutnick's] appointment raises many concerns. Not least of them is his link to Satellogic, a strategic partner of Peter Thiel's Palantir Technologies. This link reveals Lutnick's personal investment in the public-private surveillance state that is governed by US and Israeli intelligence agencies.

Peter Thiel Is Revealed As The Master Architect Of The Technocratic Takeover Of Washington, D.C.

It's the same damn thing we have had for 5,000 years of debt and violence only now it is going digital: