IMF First Deputy Managing Director Dan Katz warned that domestic-currency stablecoins might accelerate digital dollar adoption by making it easier for users to swap local tokens for dollar-backed assets on shared blockchain infrastructure.
A Bank for International Settlements (BIS) study reveals dollar-backed stablecoins are fostering 'digital dollarization' in emerging markets, largely bypassing capital controls. This trend, driven by macroeconomic stress, challenges traditional monetary policy and necessitates new regulatory tools, despite offering financial access.
A new stablecoin, Open USD (OUSD), backed by major firms like Coinbase and Visa, aims to disrupt the market by sending reserve yield to distribution platforms, challenging Circle's dominant issuer-led model and causing Circle's shares to drop.
MetaMask introduced Money Account, a self-custody feature combining stablecoin yield, payments, and trading on the Monad blockchain. The product offers DeFi lending via mUSD stablecoin, aiming for a neo-banking experience, amidst ongoing US regulatory debates on yield-bearing stablecoins.
President Trump unexpectedly canceled a housing bill signing, delaying a temporary ban on a Fed-issued digital dollar. He conditioned his signature on Congress passing the SAVE America Act, an elections bill requiring voter ID and proof of citizenship, frustrating lawmakers.
The US Senate has passed the 21st Century ROAD to Housing Act, which includes a provision banning the Federal Reserve from issuing a central bank digital currency (CBDC) until the end of 2030. The bill, aimed at boosting housing supply, passed with broad bipartisan support.
Senator Elizabeth Warren, a former crypto critic, co-authored a bipartisan housing bill that includes a provision blocking the Federal Reserve from issuing a retail digital dollar until at least 2030, a significant legislative shift from her previous support for CBDCs.
Leaders of Senate Banking and House Financial Services committees released updated text for the 21st Century ROAD to Housing Act, including a ban on the Fed issuing a central bank digital currency (CBDC) until December 31, 2030. The bill also includes limits on institutional homebuyers and community banking provisions.
Ripple has launched its dollar-backed stablecoin, RLUSD, for institutional clients in Turkey through partnerships with local crypto platforms. The move targets Turkey's significant digital asset market, driven by both speculative trading and demand for hedging against currency devaluation.
The stablecoin market has grown to $322 billion, driven by demand for real-time settlements and cross-border transfers, but its expansion threatens traditional banking by disintermediating core deposits and payment relationships, prompting banks to develop tokenized deposit systems.
Bitso's 2025 report reveals stablecoins have overtaken Bitcoin in Latin America for the first time, with 40% of crypto purchases being USD-linked stablecoins (USDT, USDC) versus 18% for Bitcoin. The shift reflects digital dollarization driven by inflation, currency depreciation and limited banking access across the region. While Bitcoin still dominates portfolios (52%), stablecoins are preferred for savings, payments and cross-border remittances. The global stablecoin market has grown to $320 billion.
Washington is turning stablecoins into regulated payment instruments while trying to keep issuer-paid yield away from holders. That combination changesthe economics of digital dollars and puts the value of user balances up for grabs across the intermediary stack. The GENIUS Act bars permitted payment stablecoin issuers and foreign payment stablecoin issuers from paying holders any […] The post CLARITY Act stablecoin fight shifts from yield to who captures digital-dollar economics appeared first on CryptoSlate.
