The world is at the brink of a possible overhaul, a ramp-up of domains, perhaps a merger that is set to pave the way for a new finance regime to take hold of the markets. This new development is defined by a new era where stablecoins are taking the leading charge, pushing the US dollar hegemony back into global finance. This amalgamation has its own term and is now largely being referred to as crypto-dollarization, an era where digital assets are used to deploy US dollar supremacy back into the domain.
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Crypto Dollarization: Word for the Day
Stablecoins have slowly been emerging as the newest tool of productivity for the US economy. With the passing of the GENIUS Act, the US economy is now all set to embrace a mix of elements, to witness a merging of traditional finance with crypto to ensure that crypto dollarization can help enforce the US dollar’s reign back into the mainstream business.
The phenomenon has been described perfectly by a notable finance expert, Nic Carter, who took to X to explain how crypto-dollarization is slowly taking over the world.
“The idea is dollarization via stablecoins. Now with the GENIUS Act about to pass and Bessent’s comments about stables reaching $3.7T (!!) (13% of M3), I believe stablecoins are being unleashed as an economic weapon. To dollarize the rest of the world and help reset the US fiscal position. Cryptodollarization has happened already, arguably in Venezuela, Argentina (partial), and Nigeria (partial). I believe it’s much more aggressive than conventional dollarization, which is often limited by the availability of physical banknotes.” Carter later shared.
How Will This Work?
In this snapshot prediction on X, Carter put forward a detailed analysis, adding how stablecoins may be used by the US to dollarize the world, especially the weak nations and “sovereign currencies.” In addition to this, Carter shared how stablecoins are capable of eliminating “cross-border payment hurdles, enabling currency substitution accessible in an aggressive manner.”
“I believe that in a decade there will be many fewer sovereign currencies. And most weak nations will be dollarized. Not through USG intervention but by a spontaneous “bottom-up” process. (This happened in Ecuador in 99/20 as described by Larry White). In effect, consumers engage in currency substitution and force the government’s hand. Stablecoins eliminate the power of borders in currency choice and allow network effects to actually take hold. This is why we see the dollar representing >99% of stablecoins but only 40-60% of international reserves and financial flows. Stablecoins make currency substitution faster and more aggressive, and they are also ~impossible to stop. In almost all cases where nation-states have attempted to prohibit flows out of local FX into USD stablecoins. They have eventually relented.”
Stablecoins as the Next Economic Weapon
Carter, in his post, further went on to predict which countries may come under the spell of rising crypto dollarization. For instance, in an infographic uploaded by the expert, countries like Nigeria, Argentina, Venezuela, Zimbabwe, Angola, Egypt, Pakistan, Brazil, and Ghana might be a few countries where this model would unleash its true power.
“…the government is saying the quiet part out loud: stablecoins are an economic weapon to passively dollarize the entire planet.”
in singapore last year i gave a talk called "cryptodollarization". the idea is dollarization via stablecoins. now with the GENIUS act about to pass and bessent's comments about stables reaching $3.7T (!!) (13% of M3), i believe stablecoins are being unleashed as an economic… pic.twitter.com/ZjhcjFGZgO
— nic carter (@nic__carter) June 18, 2025
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