Opinion: Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet
Stablecoins started as a workaround for crypto traders. By pegging tokens to US dollars, they created liquidity in unclosed markets. But in just a few years, they have gone beyond that role. The result was an on-chain financial class where coins on the dollar page set price, collateral standards and risk appeals.
The danger lies here. Without the growth of original reliable and well-regulated alternatives in the euro, yen and offshore, the US dollar’s domination will be trapped in the Crypto foundations for many years.
When that happens, liquidity tracks US fees and policies more closely, amplifying the drawdown as the Treasury wobbles and exports Washington’s policy shock directly to defi.
The Dol token has already sent the cradfi condition to the cryptographic. The number of headings changes quarterly, but the mechanism is stable. As reserves lie in the US government’s money market, crypto liquidity rises and rises with US fees.
Its plumbing is efficient and transparent, but it concentrates macro exposure through a single sovereign money market. Treating that dependency as “neutral” is a choice the industry should modify in the market structure it builds next.
Europe and Japan should turn policies into liquidity
Europe praises the issue. If Dollar Stablecoins sets rules for Onchain Finance, the euro must appear in orders, not just in white papers. Euro is the first test. Does Euro liquidity have a clear depth and base pair? In addition to the Mica-Compliant Eurc and Eurcv, there are plumbing in Europe. What you need is intentional market creation to seed the Eurobook.
Rather than simply publishing guidelines, regulators must choose winners and assume liquidity. Otherwise, “strategic autonomy” becomes a slogan with a wider bid.
The European Central Bank has already said it is loudly uttering the quiet part. The dollarized stubcoin rail weakens euro autonomy, so the policy must create euro-native autonomy.
Related: ECB President calls to address risks from non-EU stubcoins
Japan is moving in parallel. Fintech Group Monex is preparing a Stablecoin wrapped in a circle, but JPYC has recently received approval and marked one of the first Fiat-backed tokens in Asia. It is only important if JPY tokens move remittances and supplier payments and appear as deep base pairs of major exchanges. It remains a compliant pilot, with no strict spare transparency and wide distribution through exchanges, PSPs and wallets.
Hong Kong is a proof site for non-USD rails.
Hong Kong’s new licensing regime is important as it provides the constraints that Europe and Japan need in Asian times, providing a surveillance path to non-USD tokens with enforceable reserves, reimbursements and disclosures.
It starts with the Hong Kong dollar, but the framework can correspond to offshore origins or CNHs. Success is less in code and more in policy. Because CNH pools are shallow, licensed CNH tokens become useful corridors until liquidity increases and hedging is cheaper.
What actually shifts the base pair?
Non-USD tokens are only important if the unit is where price discovery occurs. That is, you will have a backup proof of independent proof that meets, or beats, or beats USDT/USDC standards daily. Additionally, institutions can comfortably fund overnight in the euro or yen, as they require a rapper-free settlement and a native multichine issuance of Hard Redemption SLAs. Exchanges should list non-USD base pairs and direct incentives, even if the initial spread is wider.
Europe has the first two parts. It is a regulated issuer pipeline and a central bank that openly discusses Eurorails. Hong Kong is the third supply. We have clear expectations for preparation and conduct in venues where we can license and oversee issues that serve Asian trading hours. Collectively, these elements can remove the on-chain monopoly of the dollar without pretending to be the dollar.
Overall: Multiculent Sea Rail
Dollar Stablecoins are not gone. However, the basic layer of a song makes the code more brittle and less open. European Euro approval shows how policies will become liquid. Japanese license waves add regional depth. The Hong Kong administration is also supplying testbeds to prove whether non-USD rails can clear the size.
When euro liquidity is integrated on exchanges following transparent and approved CNH tokens, pricing, collateral, and financing on-chain will diversify beyond a single sovereign money market, reducing concentration risk without sacrificing speed or complexity. The next cycle rewards issuers and jurisdictions that turn compliance into competitive Forex liquidity, and punishes those who default to restructure dollar control.
Opinion: Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
