Karla Barker 
The Changing Global Financial Landscape
I think we’re witnessing something pretty significant in global finance right now. The world seems to be shifting from what was essentially a US-dominated system to something more multipolar, with BRICS nations gaining influence. This isn’t just theoretical – it’s showing up in real economic data. The petrodollar agreement that kept oil trading in dollars for decades has effectively ended, and countries like Saudi Arabia are now accepting other currencies for oil trades.
What’s particularly interesting is how this affects the US bond market. Demand for long-term US bonds has been weakening, which forces the Treasury to offer higher interest rates to attract investors. The 30-year bond rate recently hit 4.75%, which is a 17-year high. When you think about it, the US government is now paying close to a trillion dollars annually just in interest payments – that’s more than the entire military budget.
The Stablecoin Solution Emerges
But here’s where things get really fascinating. While traditional bond demand has been weakening, a new type of demand has emerged through stablecoins. Tether, the company behind USDT, now holds about $171 billion in US bonds – that’s nearly a quarter of what China holds. They’ve built this incredibly profitable business model where they buy short-dated US bonds, issue USDT tokens backed 1:1 by those bonds, and pocket the interest payments.
Circle, which issues USDC, holds another $50 billion in treasuries. The scale of this is massive – between June 2024 and June 2025, USDT processed over $1 trillion per month, while USDC ranged from $1.24 trillion to $3.29 trillion monthly. These aren’t small numbers by any measure.
Why Stablecoins Matter Globally
Perhaps the most compelling part of this story is how stablecoins are being used in developing nations. In Latin America, for example, stablecoins accounted for over 50% of crypto usage between 2023 and 2024, with growth rates of 40-100% year-over-year. People in countries with high inflation and capital controls are using stablecoins as an alternative to their local currencies.
The US government seems to recognize this opportunity. The GENIUS Act, passed in July 2025, legalized Treasury-backed stablecoins, which could unlock billions in foreign demand for US bonds. It’s a clever strategy – by promoting stablecoins, the US can access foreign markets it hasn’t reached before while expanding demand for the dollar.
Bitcoin’s Potential Role
Now, here’s where Bitcoin comes into the picture. Most stablecoins today run on blockchains like Tron, which is fairly centralized and run by a handful of servers. Bitcoin, with its decentralized network and tens of thousands of copies worldwide, offers a more robust infrastructure.
The Lightning Network on top of Bitcoin provides instant settlement and better privacy for users. Transactions happen off-chain and don’t leave permanent records on the public blockchain. This could be crucial for users in developing nations who need protection from both organized crime and potentially hostile local governments.
I’m not saying this is a perfect solution, but it’s interesting to consider how Bitcoin could become the infrastructure for dollar-based transactions while the dollar remains the unit of account. It’s a compromise, sure, but one that might make sense given current realities.
Looking Forward
There are legitimate concerns about putting dollar incentives on top of Bitcoin. Some worry it could distort Bitcoin’s underlying structure or make it more vulnerable to government pressure. But the shift in US foreign policy toward tariffs rather than sanctions might actually reduce that pressure.
What strikes me is that even if the dollar eventually declines – which seems inevitable given its centralized design and dependence on American politics – Bitcoin could be there as the underlying infrastructure, ready to pick up the pieces. It might not happen for decades, but the groundwork is being laid now.
This whole situation reminds me that financial systems evolve in unexpected ways. The rise of stablecoins and their potential integration with Bitcoin infrastructure could reshape how value moves globally, particularly for people in developing economies who’ve been underserved by traditional financial systems.