All the information in this letter is NOT to be considered financial advice; it is the author’s personal view and agreed views of others from their overviews of present markets. This content includes a summary of articles that I believe to be insightful and data that has been verified. The purpose is to provide content that is of interest and relevance to MarginCall.Club members.
Welcome to the August 2025 Edition of the MarginCall.Club FinTech Newsletter
This month, There is no stock market figures or any of the normal stuff, this is a Emergency Newsletter:
Trump’s Crypto Strategy and the Future of Dollar Dominance
The Waning Demand for U.S. Securities
President Trump and those that advise him have recognized a critical shift in global financial dynamics: the declining appetite for U.S. securities and bonds with each new issuance. As traditional demand from foreign governments and institutional investors weakens, the U.S. faces challenges in maintaining its fiscal influence. Factors such as rising global debt, geopolitical tensions, and alternative reserve assets are reducing reliance on U.S. debt instruments, threatening the dollar’s status as the world’s primary reserve currency.
Stablecoins as a Strategic Tool
To counter this trend, President Trump is aggressively pushing for the legalization and promotion of dollar-backed stablecoins, such as USDT (Tether). This policy aims to empower individuals worldwide to use the U.S. dollar as a medium of exchange in their home countries, bypassing local financial systems. By integrating stablecoins into global trade and everyday transactions, the U.S. seeks to extend the dollar’s reach directly to individuals, reducing dependence on foreign central banks and their bond purchases.
Undermining Local Currencies
The widespread adoption of dollar-backed stablecoins could destabilize local currencies, particularly in countries with weaker economies. As individuals shift to stablecoins for stability and accessibility, demand for local currencies may plummet, triggering high inflation or even hyperinflation in some cases. To counteract this, governments may be forced to anchor their currencies to alternative stores of value, such as gold or Bitcoin. However, this transition is fraught with challenges, as few nations have the reserves or infrastructure to pivot swiftly, leaving their economies vulnerable to dollar dominance.
Shifting Power in Bond Markets
Historically, sovereign nations’ purchases of U.S. bonds have influenced U.S. interest rates. By promoting stablecoin adoption, Trump’s strategy reduces these countries’ bond-buying power. As local currencies lose value, foreign governments will have less capital to invest in U.S. debt, diminishing their influence over U.S. monetary policy. Meanwhile, the U.S. can dictate bond terms, as stablecoin inflows—converted into dollars—funnel directly into U.S. financial markets.
Stablecoins and Zero-Return Bonds
Under this strategy, funds from global stablecoin users would be channeled into U.S. bonds, but at terms set by the U.S. government. These bonds may offer zero or near-zero returns to investors, as the primary incentive for individuals is not interest but the relative stability of the dollar compared to depreciating local currencies. For users in inflationary economies, holding dollar-based stablecoins becomes a hedge against currency devaluation, effectively incentivizing them to indirectly fund U.S. debt without expecting traditional returns.
The Fiscal Endgame: A New Global Financial Order
This strategy could fundamentally reshape global finance, cementing U.S. dollar hegemony in a new form. By bypassing sovereign governments and appealing directly to individuals, the U.S. could create a decentralized yet dollar-centric financial ecosystem. The fiscal endgame envisions:
- Perpetual Dollar Dominance: Stablecoins ensure the dollar remains the global medium of exchange, even as traditional reserve demand wanes. This creates a self-reinforcing cycle where dollar usage fuels U.S. bond purchases, sustaining low borrowing costs for the U.S. government.
- Weakened Sovereign Control: As local currencies falter, governments lose monetary autonomy, forcing them to adopt gold, Bitcoin, or dollar pegs. This could lead to a polarized financial world: dollar-aligned economies versus those attempting alternative systems, with the latter struggling to compete.
- Global Wealth Redistribution: Individuals holding stablecoins effectively subsidize U.S. debt at zero return, transferring wealth to the U.S. while protecting their own purchasing power. This dynamic could exacerbate inequality between dollarized and non-dollarized economies.
- Geopolitical Leverage: By controlling the dominant global currency through stablecoins, the U.S. gains unprecedented leverage over international trade, sanctions, and financial systems, potentially marginalizing rival powers.
- Risks and Volatility: The endgame is not without risks. Widespread stablecoin adoption could destabilize emerging markets, trigger capital flight, and spark global economic volatility. Additionally, reliance on private stablecoin issuers like Tether introduces regulatory and transparency challenges, potentially undermining trust in the system.
Conclusion
President Trump’s push for stablecoins represents a bold, unconventional strategy to preserve U.S. financial dominance in a shifting global landscape. By leveraging technology to bypass traditional financial intermediaries, the U.S. aims to secure the dollar’s primacy while reshaping global monetary dynamics. However, this approach carries significant risks, including economic instability in vulnerable nations and potential backlash against U.S. financial imperialism. The world must brace for a new era where the dollar’s reach extends further than ever, but at the cost of global financial stab
Dollar Dominance Without Yield
If Trump’s vision succeeds, here’s where we’re heading:
- Global demand for Treasuries will be propped up by retail-level adoption of digital dollars, not sovereign wealth funds or central banks.
- U.S. deficits can continue unchecked, as foreign individuals soak up debt passively through stablecoin custodians like Tether, Circle, or a state-sanctioned digital dollar authority.
- Foreign governments will be forced to either dollarize unofficially or peg to hard assets like Bitcoin or gold, effectively surrendering monetary policy independence.
- A feedback loop emerges: the weaker their currencies become, the more their populations adopt USD stablecoins — and the more U.S. debt they indirectly underwrite.
This is a financial Cold War by other means. And it’s a genius move. Instead of threatening nations with sanctions or military might, the U.S. — via a stablecoin proxy — makes local currencies obsolete by offering a better product: dollar-backed digital cash.
Final Warning: This Is the New Imperialism
This isn’t just monetary innovation — it’s digital colonization. If Trump returns to the White House with stablecoin legislation in place, America won’t just dominate trade — it will dominate trust. And in finance, trust is everything.
You’re not just watching a crypto revolution. You’re watching the next chapter in the global financial order being written — in real time.
Prepare accordingly BUY BITCOIN, buy the Satochi bucket full.
