The Global Strategist at Rabobank Michael Every emphasizes how incentive systems could solidify dollar-linked digital assets in international finance by highlighting US legislative actions on USD stablecoins through the CLARITY and GENIUS Acts. Every compares this to the European Central Bank's (ECB) skepticism about Euro (EUR) stablecoins and points out that deeper capital markets and a larger safe-asset pool—rather than merely innovative payments—would be necessary for a stronger EUR role.
Euro options versus US stablecoins
"In the meantime, a revolution may be occurring in the geoeconomic sphere. The USD stablecoins are prohibited from paying interest by the CLARITY Act, which is making its way through the US Congress as a companion to the GENIUS Act that cements stablecoins into the financial system; however, it allows the payment of scaled rewards and fees that are their functional equivalent when used in transactions."
"That could be crucial for these widely misunderstood new assets that are intended to dominate the global Eurodollar financial infrastructure."
"In contrast, the ECB recently declared that tighter capital market integration and a bigger secure asset base are more effective ways to bolster the euro's global position than stablecoins."
"This suggests that its alternative to the USD is a EUR that looks more like it, which entails the equivalent 'benefits' of trade deficits, debt, and financialization over net exports and the industrial production needed for remilitarization - as the US seeks to pivot hard in the opposite direction."
Euro options versus US stablecoins
"In the meantime, a revolution may be occurring in the geoeconomic sphere. The USD stablecoins are prohibited from paying interest by the CLARITY Act, which is making its way through the US Congress as a companion to the GENIUS Act that cements stablecoins into the financial system; however, it allows the payment of scaled rewards and fees that are their functional equivalent when used in transactions."
"That could be crucial for these widely misunderstood new assets that are intended to dominate the global Eurodollar financial infrastructure."
"In contrast, the ECB recently declared that tighter capital market integration and a bigger secure asset base are more effective ways to bolster the euro's global position than stablecoins."
"This suggests that its alternative to the USD is a EUR that looks more like it, which entails the equivalent 'benefits' of trade deficits, debt, and financialization over net exports and the industrial production needed for remilitarization - as the US seeks to pivot hard in the opposite direction."
