Chinese cars, American currency – why stablecoins maintain dollars in the driver’s seat

Good morning, Asia. This is what makes news in the market:

On the streets of Bolivia, billboards are painted with bright green Baid Dolphin Mini advertisements.

It’s hard to overlook the irony. China’s electric vehicles, symbolizing Beijing’s export strength in emerging markets around the world, are far from the lot in the country of BRICS, but it is paid in USDT.

For years, China has been promoting decooperativeness in Latin America, framing it as north-south solidarity and economic independence from Washington. Bolivia has now settled around 10% of the original trade, Brazil has updated its 190 billion yuan ($26 billion) swapline, and Argentina has tapped renbi liquidity to avoid default.

But the reality is different for retail consumers. China still wins exports, but loses its influence over accounts. This creates a strange situation in which Chinese goods are fuelled by demand rather than renminbi demand.

USDT provides stability, speed and liquidity for merchants, dealers and consumers of inflation straps or capital-controlled economies that Yuan still cannot match. After all, the Original, like many currencies in the world, is not designed for use offshore. That is the opposite of the People’s Bank of China’s monetary policy.

China’s exports dominate Latin American markets, soybeans, lithium, buses and EVs, but as the ads show, they will drive demand for USDT rather than the yuan.

Despite the story of a joint venture, Tether’s crypto dollars are conquering emerging markets, but the digital currency pilot at Beijing’s central bank remains trapped in his home. Stablecoins offers what CBDCS and former swaplines can’t: velocity, liquidity, global trust.

The longer this lasts, the more difficult it will be for China to match its trade power with its financial impact. The decooperative in Latin America is happening, but not in the way Beijing intended.

Instead of the RMB settlement zone, the region is seeing the rise of crypto dollar rails: grassroots Re-sharing It entrenches the control of greenback under a new digital form. It is difficult to shake the dollar as a global reserve currency.

For all talks in CBDC or BRICS currency, the project has failed to launch. GRONDON The Ground runs through USDT, the digital dollar that controls emerging markets.

Market movements

BTC: Bitcoin is trading above 114.5k. BTC prices are relatively flat and have a slight downward trend. The day. Key drivers include new interest from institutional investors, expected US cuts, and general macro sentiment towards risky assets. According to the Coindesk Market Insights Bot, there appears to be a slight resistance around the $115,000-$117,000 level.

ETH: ETH is trading for $4,400. Like BTC, ETH is slightly softer even in daytime trading. Some of the pressure comes from weaker momentum and is trying to regain and hold on to previous highs. ETF inflows ended the week with the green at $556 million.

gold: Gold continues to trade near record highs, triggered by weaker US dollars, expectations for a Fed cut, high demand from central banks, and inflation concerns.

Nikkei 225: The Asia-Pacific market rose on Monday, with Japan’s Nikko 225 rising 1.28%, China stabilized its loan prime rate, with investors tracking Wall Street profits.