Genius Act Paves Way For Bitcoin To Dominate Global Infrastructure

Because the world shifts from a U.S.-dominated unipolar order to a multipolar panorama led by BRICS nations, the U.S. greenback faces unprecedented strain from declining bond demand and rising debt prices. The Genius Act, handed in July 2025, alerts a daring U.S. technique to counter this by legalizing Treasury-backed stablecoins, unlocking billions in international demand for U.S. bonds.

The blockchain internet hosting these stablecoins will form the worldwide financial system for many years. Bitcoin, with its unmatched decentralization, Lightning Community privateness, and sturdy safety, emerges because the superior option to energy this digital greenback revolution, guaranteeing low switching prices when fiat inevitably fades. This essay explores why the greenback should and can turn out to be digitized through blockchains and why Bitcoin should turn out to be its rails for the U.S. financial system to have a tender touchdown from the highs of being a world empire. 

Finish of the Unipolar World

You may need heard that the world is transitioning from a unipolar world order — the place the USA was the one superpower and will make or break markets and dominate conflicts throughout the globe — to a multipolar world, the place a union of Jap-allied nations can manage regardless of U.S. international coverage. This jap alliance is known as BRICS and is made up of main nations like Brazil, Russia, China and India. The inevitable consequence of the rise of BRICS is the restructuring of geopolitics, posing a problem to the hegemony of the U.S. greenback system.

There are numerous apparently remoted knowledge factors that sign this restructuring of the world order. Take, for instance, the USA’ army alliance with a rustic like Saudi Arabia. The U.S. is now not defending the petrodollar settlement, which noticed Saudi oil bought just for {dollars} in trade for army protection of the area. The petrodollar technique was a serious supply of demand for the greenback and was thought of pivotal to the power of the U.S. financial system for the reason that ’70s, however has successfully ended lately — at the least for the reason that begin of the Ukraine battle, when Saudi Arabia began accepting currencies other than the dollar for oil-related trades.

The Weakening of the U.S. Bond Market

One other crucial knowledge level within the geopolitical change of the world order is the weakening of the U.S. bond market. Doubts concerning the long-term creditworthiness of the U.S. authorities are rising. Some have considerations concerning the nation’s inside political instability, whereas others are skeptical that the present authorities construction can adapt to the quickly altering, high-tech world and the rise of BRICS.

Elon Musk, reportedly the richest man on the planet and arguably the best CEO in historical past, able to working a number of seemingly inconceivable corporations concurrently — reminiscent of SpaceX, Tesla, The Boring Firm and X.com — is considered one of these skeptics. Musk lately spent months with the Trump administration determining learn how to restructure the federal authorities and the nation’s monetary place through DOGE, the Division Of Authorities Effectivity, earlier than an abrupt exit from politics in Could.

Musk lately shocked the web in an All-In Summit look the place he commented on his expertise on the matter, saying, “I haven’t been to DC since Could. The federal government is principally unfixable. I applaud David (Sacks’) noble efforts… however on the finish of the day, in case you have a look at our nationwide debt.. .if AI and robots don’t resolve our nationwide debt, we’re toast.”

If Elon Musk can’t get the U.S. authorities to pivot away from monetary doom, who can?

Doubts of this type are mirrored within the low demand for long-term U.S. bonds, as evidenced by the necessity for greater rates of interest to draw traders. Immediately, the US30Y is at 4.75%, a 17-year excessive. Demand in long-dated auctions of U.S. bonds, just like the US30Y, has additionally trended downward with “disappointing” demand in 2025, according to Reuters.

The weakening demand for long-dated U.S. bonds has important penalties for the U.S. financial system. The U.S. Treasury has to supply greater rates of interest to entice traders, in flip rising the funds the U.S. authorities has to make on the curiosity of the nationwide debt. Immediately, the U.S. curiosity funds are near one trillion dollars a year, greater than the entire military budget of the nation.

If the USA fails to search out sufficient patrons for its future debt, it might battle to pay its speedy payments, having to rely as a substitute on the Fed to purchase that debt, which expands its steadiness sheet and the cash provide. The consequences, although complicated, would seemingly be inflationary on the greenback, additional harming the U.S. financial system.

How Sanctions Wounded the Bond Market

Additional weakening the U.S. bond market, in 2022, the USA manipulated the U.S.-controlled bond market rails towards Russia in response to its invasion of Ukraine. Because the Russians invaded, the U.S. froze Russian treasury reserves held abroad, which have been meant partially to pay its nationwide debt to Western traders. In what seems to be like an try and pressure Russia right into a default, the U.S. additionally reportedly started blocking all makes an attempt made by Russia to repay its personal debt to international bondholders.

A U.S. Treasury spokeswoman confirmed at the time that sure funds have been now not being allowed.

“Immediately is the deadline for Russia to make one other debt fee,” the spokeswoman mentioned.

“Starting immediately, the U.S. Treasury won’t allow any greenback debt funds to be constituted of Russian authorities accounts at U.S. monetary establishments. Russia should select between draining remaining beneficial greenback reserves or new income coming in, or default.”

The U.S. successfully weaponized the bond market towards Russia by a novel use of its international coverage sanctions regime. However sanctions are a double-edged sword: Since then, international demand for U.S. bonds has weakened as nations not aligned with U.S. international coverage seemed to diversify their threat. China has led this trend away from U.S. bonds, its holdings peaked in 2013 at over 1.25 trillion {dollars} and has accelerated downward for the reason that starting of the Ukraine battle, sitting immediately at near 750 billion. 

Whereas this occasion demonstrated the devastating effectiveness of sanctions, it additionally deeply wounded confidence within the bond market. Not solely was Russia blocked from paying off its money owed below the Biden administration sanctions, additionally harming traders as collateral harm, however the freezing of its international treasury reserves confirmed the world that in case you, as a sovereign nation, go towards U.S. international coverage, all bets are off — and that features the bond market.

Following the debatable overreach of sanctions from the earlier administration, the Trump admin has backed off from sanctions as a technique, since they hurt the U.S. monetary sector, and pivoted to a tariff-based method to international coverage. These tariffs to date have had combined outcomes. Whereas the Trump administration boasts record revenue and infrastructure investments by the personal sector within the nation, Jap nations have accelerated their collaboration through the BRICS alliance.

The current SCO summit in Tianjin, China, introduced collectively world leaders, together with Chinese language President Xi Jinping, Russian President Vladimir Putin and Prime Minister of India Narendra Modi, amongst others. Probably the most notable information to return out of the SCO summit was a joint pledge by India and China to be “partners not rivals,” an additional step towards the multipolar world order.

The Stablecoin Playbook

Whereas China has divested from U.S. bonds up to now decade, a brand new purchaser has emerged, rapidly coming into the highest echelons of energy. Tether, a monetary know-how firm born within the early days of Bitcoin and initially constructed on high of its community by the Mastercoin layer-two protocol, immediately owns $171 billion worth of U.S. bonds, near 1 / 4 of the quantity China owns and greater than most different nations.

Tether is the issuer of the most well-liked stablecoin, USDT, with a market cap of 171 billion {dollars} in worth in circulation, equal to its reported bond holdings. The corporate reported $1 billion in profits for Q1 of 2025, with a easy but good enterprise mannequin: purchase short-dated U.S. bonds, emit USDT tokens backed 1-for-1, and pocket the coupon curiosity funds from the U.S. authorities. With 100 staff at the start of the 12 months, Tether is claimed to be one of the worthwhile corporations per worker on the planet.

Circle, the issuer of USDC and the second-most fashionable stablecoin available in the market, additionally holds near $50 billion in short-dated treasuries. Stablecoins are used everywhere in the world, notably in Latin America and growing nations, as a substitute for native fiat currencies, which undergo far deeper inflation than the greenback and are sometimes hindered by capital controls.

The quantity processed by stablecoins immediately is past a distinct segment, nerd monetary toy; it’s within the trillions of {dollars}. A 2025 Chainalysis report states, “Between June 2024 and June 2025, USDT processed over $1 trillion per thirty days, peaking at $1.14T in January 2025. USDC, in the meantime, ranged from $1.24T to $3.29T month-to-month. These volumes spotlight the continued centrality of Tether and USDC in crypto market infrastructure, particularly for cross-border funds and institutional exercise.”

Latin America, for instance, accounted for 9.1% of whole crypto worth acquired between 2023 and 2024, with year-to-year utilization progress charges of 40-100%, of which over 50% have been stablecoins, based on a 2024 Latin America-focused report by Chainalysis, demonstrating the robust demand for various currencies within the growing world.

The U.S. wants new demand for its bonds, and that demand exists within the type of demand for the greenback, on condition that most individuals all through the world are locked into fiat currencies which can be far inferior to these of the USA. If the world transitions to a geopolitical construction that forces the greenback to compete on even phrases with all different fiat currencies, it nonetheless could proceed to be the most effective amongst them. The US, for all its faults, stays a superpower, with unbelievable wealth, human capital and financial potential, notably when in comparison with many smaller nations and their questionable pesos.

Latin America has demonstrated a deep starvation for the greenback, however there’s a provide drawback as native nations resist legacy banking greenback rails. Having access to dollar-denominated accounts in lots of nations outdoors of the USA is just not simple. Native banks are sometimes tightly regulated and serve on the behest of native governments, who even have an curiosity in defending their peso. The U.S. is just not the one authorities that understands the worth of printing cash and defending its worth, in any case.

Stablecoins resolve each issues; they create demand for U.S. bonds and might ship dollar-denominated worth to everybody, wherever on the planet, regardless of the pursuits of their native governments.

Stablecoins, leveraging the censorship-resistant qualities of their underlying blockchains, can present people believable deniability and privateness from their native state, a function that native banks can’t present. Because of this, the U.S., by the promotion of stablecoins, can entry international markets it has but to succeed in, increasing its demand and consumer base, whereas additionally exporting greenback inflation to nations that should not have a direct affect on American politics — a protracted custom within the historical past of the USD. From a strategic perspective, this sounds splendid for the USA, and it’s a easy extension of how the USD has labored for many years, simply on high of recent monetary know-how.

The U.S. authorities understands this chance. In line with Chainalysis, “The stablecoin regulatory landscape has developed considerably over the previous 12 months. Whereas the GENIUS Act in the U.S. (which legalized U.S. bond-backed stablecoins) has not but taken impact, its passage has pushed robust institutional curiosity.”

Why Stablecoins Ought to Journey On High of Bitcoin

One of the simplest ways to ensure Bitcoin advantages from the elevation of the growing world out of mediocre fiat currencies is to ensure the greenback makes use of Bitcoin as its rails. Each greenback stablecoin pockets must be a Bitcoin pockets as properly.

Critics of the Bitcoin greenback technique will say that it goes towards Bitcoin’s libertarian roots, that Bitcoin was supposed to switch the greenback — not improve it or convey it into the twenty first century. Nonetheless, this concern is basically U.S.-centric. It’s simple to sentence the greenback if you receives a commission in {dollars} and your financial institution accounts are denominated in USD. It’s simple to critique a 2-8% greenback inflation fee (relying on the way you measure it) when that’s your native forex. In too many nations outdoors of the U.S., 2-8% yearly inflation could be a blessing.

A big portion of the inhabitants of the world suffers from fiat currencies far worse than the greenback, with inflation charges within the low-to-high double digits and even triple digits, which is why stablecoins have already gained huge adoption all through the third world. The growing world must get off the sinking ship first. The hope is that after they’re on a secure boat, they could begin trying round for tactics to improve to the Bitcoin yacht.

Sadly, most stablecoins will not be on high of Bitcoin immediately, regardless of having began on Bitcoin, a technical actuality that may be a huge supply of friction and threat for customers. The vast majority of the stablecoin quantity immediately runs on the Tron blockchain, which is a centralized community run on a handful of servers by Justin Solar, a Chinese language nationwide who might be simply focused by international states that detest the unfold of greenback stablecoins inside their borders.

Many of the blockchains on high of which stablecoins transfer immediately are additionally completely clear. Public addresses, which function account numbers for his or her customers, are publicly trackable, typically linked by native exchanges to the consumer’s private knowledge, and simply accessible by native governments. That’s a lever international nations can use to push again on the unfold of dollar-denominated stablecoins.

Bitcoin doesn’t have these infrastructure dangers. Not like Ethereum, Tron, Solana, and so on., Bitcoin is extremely decentralized, with tens of hundreds of copies of itself all through the world and a sturdy peer-to-peer community used to transmit transactions in a approach that may simply route round any bottlenecks or choke factors. Its proof-of-work layer offers a separation of powers that different proof-of-stake blockchains should not have. Michael Saylor, for instance, regardless of his huge stack of bitcoins, 3% of the full provide, doesn’t have a direct vote on the consensus politics of the community. The identical cannot be mentioned for Vitalik, and the proof-of-stake consensus politics of Ethereum, or Justin Solar and Tron.

Moreover, the Lightning Community on high of Bitcoin unlocks on the spot transaction settlement, which advantages from Bitcoin’s underlying blockchain safety. Whereas additionally offering customers important privateness, as all Lightning Community transactions are off-chain by design, and don’t go away an everlasting footprint on its public blockchain. This basic distinction in method to funds grants customers privateness from these they ship cash to, in addition to from third-party observers who don’t run Lightning wallets or high-liquidity Lightning nodes. This reduces the variety of risk actors that may invade consumer privateness from anybody who appears like trying on the blockchain, to a handful of extremely competent entrepreneurs and know-how corporations, at worst.

Customers can even run their very own Lightning nodes regionally and select how they connect with the community, and loads of individuals do, taking their privateness and safety into their very own palms. None of those qualities might be seen within the blockchains that most individuals use for stablecoins immediately.

Compliance insurance policies and even sanctions might nonetheless be utilized to greenback stablecoins, their governance anchored to Washington, with the identical analytics and smart-contract-based approaches used immediately to cease felony use of stablecoins. There’s no basic solution to decentralize one thing just like the greenback; in any case, it’s centralized by design. Nonetheless, if a lot of the stablecoin worth have been to be transferred over the Lightning Community as a substitute, consumer privateness is also maintained, defending customers in growing nations from organized crime and even their local governments.

Finally, what customers care about is transaction charges — the price of transferring their cash round — which is why Tron has dominated the market to date. Nonetheless, with USDT coming on-line on high of the Lightning Community, that might quickly change. Within the Bitcoin greenback world order, the Bitcoin community would turn out to be the medium of trade of the greenback, whereas the greenback would stay, for the foreseeable future, because the unit of account.

Can Bitcoin Survive This?

Critics of this technique are additionally involved concerning the affect the Bitcoin greenback technique could have on Bitcoin itself. They marvel if placing the heavy incentives of the greenback on high of Bitcoin can distort its underlying construction. The obvious approach by which a superpower just like the U.S. authorities may need to manipulate Bitcoin is to bend it into compliance with sanctions regimes, one thing they might theoretically do on the proof-of-work layer.

Nonetheless, as mentioned earlier, the sanctions regime has arguably already peaked, giving solution to the period of tariffs, which search to regulate the movement of products quite than the movement of funds. This post-Trump, post-Ukraine battle shift in U.S. international coverage technique really relieves strain off Bitcoin.

Moreover, as main Western companies, reminiscent of BlackRock, and even the U.S. authorities, proceed to undertake bitcoin as long-term investments, or, within the phrases of President Donald J. Trump, a “Strategic Bitcoin Reserve,” they too begin to align with the long run success and survival of the Bitcoin community. Attacking Bitcoin’s censorship resistance qualities wouldn’t solely undermine their funding within the asset however would additionally weaken the community’s means to ship stablecoins to the growing world. 

The obvious compromise that Bitcoin must make within the Bitcoin greenback world order is to surrender the unit of account dimension of cash. That is unhealthy information for a lot of Bitcoiners, and rightfully so. Unit of account is the mecca of hyperbitcoinization, and plenty of of its customers stay in that world immediately, as they calculate their financial selections based mostly on the last word affect on the quantity of sats they maintain. Nonetheless, nothing can actually take that away from those that perceive Bitcoin as probably the most sound cash to have ever existed. In truth, the conviction of Bitcoin as a retailer of worth and a medium of trade shall be strengthened with this Bitcoin greenback technique.

Sadly, after 16 years of makes an attempt to make bitcoin a unit of account as ubiquitous because the greenback, some are recognizing that within the medium time period, the greenback and stablecoins will seemingly fulfill that use case. Bitcoin funds won’t ever go away, and bitcoiner-led corporations will proceed to rise and will proceed to just accept bitcoin as fee to construct up their bitcoin treasuries — however stablecoins and dollar-denominated worth will seemingly dominate crypto commerce within the coming a long time. 

Nothing Stops This Practice

Because the world continues to adapt to the rising powers within the east and the emergence of the multipolar world order, the USA will seemingly should make troublesome and pivotal selections to keep away from a long-lasting monetary disaster. The nation might, in concept, decrease its spending, pivot, and restructure to be able to turn out to be extra environment friendly and aggressive within the twenty first century. And the Trump administration is actually attempting to do exactly that, as seen by the tariff regime and different associated efforts, which try and convey again manufacturing of important industries into the USA and bolster its native expertise. Nonetheless, within the now legendary phrases of Lyn Alden, nothing stops this practice.

Whereas there are just a few miracles that maybe might resolve the USA’ monetary woes, such because the science-fiction-like automation of labor and intelligence, and even the Bitcoin greenback technique, finally, even placing the greenback on the blockchain received’t change its destiny: to turn out to be a collectible for historical past buffs, a rediscovered token of an historical empire match for a museum.

The greenback’s centralized design and dependence on American politics finally doom the greenback as a forex, but when we’re life like, its demise won’t be seen for an additional 10, 50 and even 100 years. When the time does come, if historical past repeats, Bitcoin must be there because the rails, prepared to choose up the items and fulfill the prophecy of hyperbitcoinization.

BM Large Reads are weekly, in-depth articles on some present subject related to Bitcoin and Bitcoiners. Opinions expressed are these of the authors and don’t essentially mirror these of BTC Inc or Bitcoin Journal. When you’ve got a submission you suppose suits the mannequin, be happy to succeed in out at editor[at]bitcoinmagazine.com.