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⚡️ NEW: The IMF says digitalization has created new financial services products and digital assets designed to be used as “a means of payment or act as a store of value.”

According to Zhang Ming, deputy director of the Institute of Finance and Economics at the Chinese Academy of Social Sciences, U.S. dollar-pegged stablecoins, not bitcoin ( BTC) or ethereum ( ETH), are likely to have a “significant impact” on the international financial system. Ming cites stablecoins’ “link” to the U.S. dollar, a sovereign currency, which he said gives these digital assets the characteristics of the greenback. In a recently published op-ed, Ming, who also serves as the deputy director of the National Finance and Development Laboratory, asserts this U.S. dollar link is further extending the greenback’s hegemony. To illustrate, Ming points to the use of stablecoins as a store of value by residents and businesses in countries battered by inflation. The deputy director also cited the use of U.S. dollar stablecoins to provide liquidity support in the decentralized finance (DeFi) ecosystem as another example of these digital currencies playing a role in strengthening the international currency status of the U.S. dollar. Observers believe the likely passage of stablecoin bills by the U.S. Congress will further enhance their role in bolstering the U.S. dollar As has been reported by several media outlets, including Bitcoin.com News, some U.S. lawmakers are seeking to pass legislation that would compel stablecoin issuers to back stablecoins with U.S. Treasuries only. Some opponents of this move insist the passage of such legislation would be detrimental to Tether, the issuer of the largest stablecoin by market capitalization, USDT, or tether. Other critics, however, believe the enactment of laws compelling stablecoin issuers to hold U.S. Treasuries ensures the dollar hegemony is maintained. Tether CEO Paolo Ardoino has repeatedly said that his company, which holds billions of dollars in U.S. debt, is already playing its part in furthering this goal. However, Ming believes China can counter attempts to extend the dollar into the digital currency realm by issuing its own stable currency. He also suggested expanding the use of the digital yuan on Chinese internet platforms to increase the renminbi’s (RMB) international currency status. Meanwhile, Ming said China should encourage the trial and promotion of digital special drawing rights (e-SDR) at the level of the International Monetary Fund (IMF). Implementing an e-SDR could upend attempts to make the U.S. dollar the most important currency in the digital currency ecosystem. “The flourishing of various digital currencies is naturally better than the U.S. dollar monopolizing the development track of digital currencies. e-SDR can expand the use of supranational reserve currencies in the digital field and virtual space, and also help promote the diversification of the international monetary system,” Ming said. 免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。

Against all odds, BlackRock, the global asset management giant, is shaking up preconceived notions about bitcoin. While cryptocurrencies are often associated with volatility and risk, Robert Mitchnick, head of digital assets at BlackRock, dismantles this narrative. In a context where bitcoin has lost 20% of its value since its peak at the end of 2023, his recent statements on CNBC resonate like a bold plea. Why is a traditional institution defending such a disruptive vision? The answer lies in a subtle strategy and a deep understanding of market evolution. Robert Mitchnick points out a troubling paradox: the crypto industry itself may have fueled the reputation of bitcoin as a risky asset. By emphasizing its volatility or potential for quick gains, industry players may have inflicted a “self-inflicted wound”. However, Mitchnick reminds us of bitcoin’s fundamentals: algorithmic scarcity, decentralization, absence of state sovereignty. All of these advantages, according to him, bring it closer to digital gold than to tech stocks. The approval of Bitcoin ETFs in 2023 marked a silent break. With $100 billion in assets under management, these funds — including BlackRock’s iShares Bitcoin Trust (IBIT) — have institutionalized access to bitcoin. IBIT, in particular, has shattered records: $10 billion reached in just a few weeks, an unprecedented feat in 32 years of ETF history. These figures do not reflect a mere speculative trend, but structural adoption. Bitcoin has indeed dropped by 20% in 2025, weighed down by recession fears and Trump’s tariff policies. But Mitchnick brushes aside these concerns: Tariffs are not a fundamental risk for bitcoin. A recession, on the contrary, could be a catalyst. He also highlights a 15% rise since November 2024, evidence that the token withstands turbulence better than other assets. Volatility, often confused with risk, masks a more complex reality. At the beginning of 2025, BlackRock integrated its Bitcoin ETF (IBIT) into its model portfolios, with an allocation of 1% to 2%. A minimalistic decision in appearance, but heavy with meaning. These portfolios, intended for high-risk investors, now include bitcoin on par with real estate or commodities. For Mitchnick, this is a key step towards normalization: Bitcoin is not a niche. It is an asset class in its own right. Despite concerns about interest rates or American growth, BlackRock bets on bitcoin as a hedge. Mitchnick reminds a crucial fact: a rise in rates would also penalize stocks. Bitcoin, on the other hand, offers partial decorrelation — a benefit in times of instability. “In the event of a systemic crisis, investors will seek assets outside the traditional banking system,” he argues. A reasoning reminiscent of the rise of gold in the 1970s. BlackRock does not defend bitcoin as a speculative bet, but as a store of value. The analogy with gold recurs like a leitmotif: scarcity, universality, resistance to censorship.

The interplay between the global geopolitical situation and the cryptocurrency market is complex and increasingly significant. Here's a breakdown of key points:   1. Geopolitical Instability and Market Volatility: Increased Uncertainty: Geopolitical events, such as wars, political tensions, and economic sanctions, create uncertainty in global financial markets. This uncertainty directly translates to increased volatility in the cryptocurrency market, which is already known for its price swings. For example, conflicts can cause investors to seek safe-haven assets, and while some view crypto as such, its volatility can also cause panic selling.   Impact on Investor Sentiment: News of geopolitical unrest can trigger fear and anxiety among investors, leading to sell-offs in both traditional and cryptocurrency markets. This "risk-off" sentiment can particularly affect crypto, as it is often considered a higher-risk asset class. 2. Cryptocurrency as a Tool in Geopolitics: Sanctions Evasion: Cryptocurrencies' decentralized nature makes them attractive for countries and individuals seeking to bypass economic sanctions.   This raises concerns among governments about the potential for illicit financial flows and the undermining of international sanctions regimes.   Alternative Financial Systems: Some nations are exploring cryptocurrencies and central bank digital currencies (CBDCs) as alternatives to the traditional dollar-dominated financial system. This trend could reshape global financial power dynamics. Funding Conflicts: It is seen that crypto currency can be used to fund conflicts, and other illicit activities. This is a large concern for many governing bodies.   3. Regulatory Responses: Increased Scrutiny: Geopolitical concerns are driving governments to increase their regulatory scrutiny of the cryptocurrency market.   This includes efforts to combat money laundering, terrorist financing, and sanctions evasion. CBDC Development: Many central banks are accelerating their development of CBDCs in response to the rise of cryptocurrencies and the need to maintain control over their monetary systems. This is creating a new dynamic where state backed digital currencies are competing with decentralized crypto currencies. 4. Crypto's Role as a Safe Haven: Debate on Safe-Haven Status: Whether cryptocurrencies like Bitcoin can act as a true safe-haven asset during geopolitical crises is a subject of ongoing debate. While some investors see them as a hedge against inflation and economic instability, their high volatility can also deter others. Currency Devaluation: In regions experiencing currency devaluation due to political instability, cryptocurrencies can offer an alternative store of value.   In summary: The connection between geopolitics and the crypto market is becoming increasingly intertwined. Geopolitical events can significantly impact crypto prices, while cryptocurrencies themselves are being used as tools in geopolitical strategies. This dynamic is leading to increased regulatory scrutiny and a reshaping of the global financial landscape.

In a major development, Meltem Demirors, Chief Strategy Officer of CoinShares, stated that Ethereum’s pivot to Proof of Stake (PoS) in 2022 was costly. In 2022, the Ethereum conversion to PoS dramatically reduced energy consumption by over 99%. Notably, ETH’s consistent market volatility raises issues about its long-term impact on the network’s value and stability. According to Meltem Demirors, PoS weakened the Ethereum core network by enabling the rapid expansion of Layer-2 scaling solutions. According to her, these L2s now process a significant share of transactions. She believes the network lost a $1 trillion growth opportunity by abandoning Proof of Work (PoW). This has ultimately diluted the Ethereum Layer-1 ecosystem instead of strengthening it. For her, had ETH stayed on PoW, it could have created a solid energy-computation infrastructure that would make it rival Bitcoin side-by-side. She pointed out that it could have also allowed for strategic innovation in GPU computing, similar to Bitcoin mining advanced hardware development. Similarly, Ethereum’s economic viability is drawing mixed market reactions. When developers introduced PoS, Ethereum came off as ultra-sound money. This positioning is due to mechanisms like EIP-1559, which burns a portion of transaction fees. ETH achieved near-zero net issuance for a time, reinforcing its deflationary narrative. However, data from Ultrasound Money now shows that Ethereum is in its longest inflationary period since The Merge. The network currently issues 943,000 ETH annually while burning just 27,000 ETH. At an annual inflation rate of 0.76%, Ethereum’s earlier deflationary claims are being challenged. CryptoQuant analysts caution that Ethereum may never become deflationary again without significantly higher network activity. Notably, this has weakened its long-term store-of-value argument. As we mentioned in our earlier news brief, Justin Drake posited that through the much-anticipated Pectra Upgrade, Ethereum would have to decrease its issuance or increase its token burn to restore its status as ultrasound money. It is worth mentioning that Ethereum’s broader vision has also come under scrutiny. Peter Szilágyi, a key Ethereum developer, recently stated that ETH was never designed to be money. Instead, it was meant to power a decentralized ecosystem. This contradicts narratives that positioned ETH as a superior alternative to Bitcoin in terms of scarcity and value retention. Critics argue that a lack of clear positioning could affect Ethereum’s long-term appeal. Despite these concerns, some industry leaders see benefits in PoS. Vince Yang, CEO of zkLink, pointed out that Ethereum’s scaling activity is at an all-time high, with transaction speeds doubling in recent months due to lower gas fees. One avenue to enhance Ethereum’s functionality is the Pectra upgrade. As we covered in our latest report, the Ethereum Pectra upgrade went live on the Sepolia testnet but encountered errors exacerbated by an attacker’s activities. However, Ethereum developers have introduced the ‘Hoodi’ testnet to further refine Pectra’s innovations. All the arguments have weighed down ETH’s price outlook thus far. As of this writing, ETH is trading at $1,967.42, down over 1.4% in the past 24 hours.