Dollar Dominance, Bitcoin Surge, Global Crisis

● US Stablecoin Law – Dollar Dominance Rises, Crypto Under Siege

U.S. Stablecoin Law Passage and the Alarm Bell it Rings for the Global Economy

[1] U.S. Stablecoin Law Passage – Timing and Key Contents

Regulation of the stablecoin market is strengthening with the passage of the GENIUS Act by the U.S. Senate in June.This bill mandates a 1:1 collateral principle, focusing on providing stability and trust to the cryptocurrency ecosystem.Stablecoins within the U.S. are expected to further strengthen the dollar’s global influence as a borderless payment system.The competitive landscape between CBDCs and private digital assets is intensifying, and the impact on non-dollar countries worldwide is drawing attention.In this process, the U.S. government and financial authorities are complementing the existing reserve currency system and strengthening strategies to maintain dollar hegemony.

[2] Understanding Stablecoins – Basic Concepts and Characteristics

Unlike traditional cryptocurrencies, stablecoins aim to maintain a stable value by being pegged to fiat currencies, such as the U.S. dollar.Typically, they adopt a dollar-backed approach, like USDT, adhering to the principle that collateral value must always be held.Unlike CBDCs, private stablecoins aim for a 100% collateral-backed model, not an algorithmic one.They implement an innovative system that allows real-time payments across borders and regulatory barriers, playing a crucial role in the global payment network.Market attention is focused on key keywords such as digital assets, cryptocurrencies, and stablecoins.

[3] Bitcoin and Cryptocurrencies in General – Store of Value and Investment Characteristics

Since its launch in 2009, Bitcoin has been recognized as digital gold, establishing itself as a store of value.Many in the market believe that Bitcoin will grow into a stable investment asset based on its liquidity and network effects.With the introduction of ETFs and the inflow of institutional funds, there is a possibility that Bitcoin’s market price could rise above $100,000.The cryptocurrency market offers democratized investment opportunities but also carries risks such as fraud and high volatility.These characteristics suggest that both individual and institutional investors should approach with caution.

[4] Won-Denominated Stablecoins and the Domestic Economy – Strategic Implications

Discussions about introducing Won-denominated stablecoins are rapidly emerging in Korea, but existing payment systems and intermediary fee issues are complex factors.Won-denominated stablecoins aim to expand Won payments in foreign trade and can redefine the role of the national currency in a dollar-centric payment market.However, due to the nature of borderless digital payment systems, their competitiveness might be lower compared to dollar stablecoins, and regulation and institutional reform must precede.The government and financial authorities must establish a financial supervisory system, in addition to supplementing regulations, to ensure consumer protection and investment stability.Along with this, large platform companies and financial institutions are expected to provide innovative financial services combined with stablecoins.

[5] Future Outlook and Investment Strategy – Risk Management and Long-Term Approach

The passage of the U.S. stablecoin law signals fundamental changes in the global financial environment, simultaneously promoting the dollar’s traditional reserve currency status and the development of digital assets.Major cryptocurrencies, including Bitcoin, and stablecoins show potential for recovery to stability after initial shocks, which could present opportunities for long-term investors.The democratization of investment offers participation opportunities to everyone, but a thorough analysis of the accompanying risks and potential for fraud is necessary.Financial institutions and governments must support technological innovation while also striving for investor protection through systematic regulation and oversight.Ultimately, the development of digital assets and cryptocurrencies will profoundly impact the global economic structure and investment environment, making wise investment strategies and risk management more crucial than ever.

With the passage of the U.S. stablecoin law, the 1:1 collateral principle is strengthened, intensifying the dollar’s global payment system and competition between CBDCs and cryptocurrencies. Stablecoins are pegged to fiat currencies, maintaining stable value and enabling borderless real-time payments. Bitcoin is recognized as digital gold, with institutional investment and ETF inflows potentially increasing its market value, while discussions on introducing Won-denominated stablecoins in Korea aim to secure domestic currency competitiveness and foster financial innovation. Overall, while offering investment opportunities, it also carries high volatility and fraud risks, making a long-term approach and risk management essential.

*Source: 연합뉴스경제TV

미국, 스테이블 코인법 통과…비달러 국가에 닥쳐올 재앙 (고란) ㅣ 곽수종의 프리즘

● BITCOIN COLLATERAL – DEFI’S EXPLOSIVE SHIFT

Bitcoin-Collateralized Stablecoins and the Future Outlook of the DeFi Ecosystem

Emergence of Innovative Financial Products

Stablecoins issued with Bitcoin as collateral are heralding significant changes in the DeFi market. Unlike existing stablecoins backed by fiat currencies or dollar-pegged assets, this system is based on Bitcoin, a powerful cryptocurrency asset. Elastos has taken the lead by launching BTCD, ensuring stability by over-collateralizing Bitcoin at 160-200%. This financial innovation naturally incorporates top SEO keywords such as cryptocurrency, DeFi, stablecoins, Bitcoin, and financial innovation.

Technical Structure and Operation Method

Utilizing smart contracts, Bitcoin-to-dollar exchange rate data is obtained via oracles, and BTCD’s value is automatically adjusted according to this data. If the collateral ratio drops below 110%, the system is designed to allow market participants to recover discounted Bitcoin. Conversely, if BTCD trades above $1, holders can burn it and reclaim Bitcoin, thereby regulating supply. Such mechanisms operate autonomously without central authority intervention, demonstrating the potential to evolve into decentralized financial products beyond traditional finance.

Market Impact and Future Outlook

Should experimental assets like BTCD succeed, new financial services are expected to emerge across the entire Ethereum-based DeFi ecosystem. With demand driven by institutional investors and governments strengthening, Bitcoin’s role is proving its potential as digital collateral, beyond being a mere investment asset. These changes are anticipated to create massive ripple effects in the DeFi, cryptocurrency, Bitcoin, financial innovation, and stablecoin sectors.

Real-time Market Changes and Strategic Responses

The market is observing the volatility associated with the introduction of Bitcoin-collateralized stablecoins, and investors must consider the balance between security and liquidity provision. As smart contract-based automated systems continue to improve, real-time information and response strategies are becoming crucial across the entire financial market. Such technological advancements are expected to have an innovative impact on the global economy as a whole, along with the expansion of the DeFi ecosystem.

Bitcoin-collateralized stablecoin BTCD, launched by Elastos, is bringing innovation to the DeFi market. An automated system utilizing smart contracts and oracles adjusts its value according to the Bitcoin-to-dollar exchange rate, and a collateral ratio adjustment mechanism supports its stability. The market is noting the ripple effects in the DeFi, cryptocurrency, and financial innovation sectors, along with the expanding role of Bitcoin as digital collateral.

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● War, Financial Crisis – Bitcoin Surges Old Systems Crumble

Global Economic Outlook: The Rise of Digital Assets Amidst War and Financial Crises

1. Harbingers of Crisis and Initial Economic Disruption

According to economic outlook analyses, signs of crisis are being detected as financial markets in several countries have recently become unstable.Political conflicts and the outbreak of war in various regions across the globe have shocked the existing financial system.Major disruptions have occurred in traditional financial markets due to the paralysis of banking systems and restrictions on international remittances.These circumstances have become an opportunity to highlight the new prominent role and value of digital assets, especially Bitcoin.Attention should be paid to the potential of digital assets and blockchain technology to offer an alternative to traditional financial markets.

2. Intensification of War and Strategic Utilization of Digital Assets

Bitcoin has once again begun to attract attention as a key means to ensure financial transactions do not cease even during wartime.Indeed, the Ukrainian government actively utilized digital assets for donations and support amidst the paralysis of international remittance networks.Bitcoin and other digital assets have played a crucial role as funds for national defense and humanitarian aid.These cases are based on the security and transparency offered by blockchain technology, establishing them as key keywords noted by economic outlook experts.Unlike traditional assets within financial markets, digital assets have the advantage of being able to be traded quickly and securely even during war and crisis situations.

3. Overcoming Crisis and Future Financial Market Outlook

In the current financial market, Bitcoin’s fundamental value is being proven despite short-term volatility.Investors are flocking to the digital asset market for liquidity and asset protection during crises.Even amidst financial market turmoil, transaction systems utilizing blockchain technology are being evaluated as stable alternatives.Future economic outlooks anticipate the emergence of a new financial paradigm where digital assets and blockchain coexist.These changes are expected to provide new investment opportunities for investors worldwide and positively impact the global economy as a whole.

4. Comprehensive Summary and Key Implications

Amidst war and financial crises, digital assets, including Bitcoin, are gaining attention not merely as speculative assets but as global stores of value.At this juncture, where the instability of international financial markets and the limitations of traditional banking systems have been exposed, blockchain technology will play an even more crucial role.The strategic utilization of digital assets will become a crucial option for both governments and the private sector for financial market stability and crisis management.According to future economic outlooks, the global financial market is highly likely to be reorganized into a new paradigm different from the existing system, and the investment environment is expected to change rapidly accordingly.Economic outlook experts believe that these trends will have a positive impact on long-term economic growth and global financial stability.

In the global economic outlook, the limitations of the existing financial system due to war and financial crises are being revealed, leading to the emergence of digital assets and blockchain technology as crucial.Bitcoin is gaining prominence as an independent store of value and a means of financial transaction in crisis situations, providing practical assistance to both governments and the private sector.Going forward, with changes in financial markets, the strategic utilization of digital assets is expected to become even more active, forming a new financial paradigm.These changes are anticipated to provide new opportunities for investors worldwide and foster stability and growth in the global economy.

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