Bitcoin’s the Rock Star, but Stablecoins Are the U.S.’s Stealth Tool to Lock in Global Financial Power

The crypto market boasts approximately $3 trillion as of April 2025, with Bitcoin price trading at $83,487. Yet, beneath the buzz

In the dynamic landscape of digital assets, Bitcoin has undeniably captured the limelight, with its April 2025 price at $83,487 and a peak of $108,000 in January 2025, reaching the apex of the crypto market.

However, while Bitcoin's price fluctuations and market dominance are widely discussed, another class of crypto tokens has been silently amassing an impressive market share—stablecoins.

Stablecoins, which maintain a stable value pegged to the U.S. dollar, have achieved a collective market cap of over $200 billion as of April 2025, in stark contrast to Bitcoin's price movements and market share.

This places them as a key factor in the U.S. strategy for maintaining financial power in a rapidly changing technological landscape.

The Role of Stablecoins

Stablecoins, such as Tether (USDT) and USD Coin (USDC), are designed to keep their value stable in relation to fiat currencies, typically the dollar.

This characteristic contrasts with Bitcoin's price volatility, rendering stablecoins more useful for everyday transactions and less risky for merchants.

Their stability and utility have led to a surge in popularity among traders seeking a haven in the turbulent crypto market, further propelling the total market cap of stablecoins to over $200 billion by April 2025.

Moreover, in nations like Venezuela and Argentina, which have experienced severe inflation and currency devaluation, stablecoins have become an essential tool for citizens to retain savings and make daily purchases.

As highlighted by Andreessen Horowitz, stablecoins facilitate nearly instantaneous and low-cost international transactions, in stark contrast to traditional methods, which involve high fees and multiple intermediaries.

This real-world application underscores the potential of stablecoins to revolutionize the financial landscape.

The U.S. Government's Role

The U.S. government is keenly aware of the implications of stablecoins and is actively shaping the regulatory framework to promote their growth.

During an April 14, 2025, chat with Anthony Pompliano, Bo Hines, Executive Director of Digital Assets, hinted at the administration's strategy.

Hines stated that stablecoins could be instrumental in sustaining the dollar's global hegemony, a point to which both parties in Congress seemed to be attentive.

This initiative is part of a broader effort by the Trump administration to quickly implement policies clarifying tokenization, staking, and other crypto domains, aiming to establish the U.S. as the preeminent global crypto hub.

The administration is focused on constructing rules and systems that would encourage the expansion of dollar-pegged stablecoins, especially in comparison to China's rapidly developing digital yuan.

This aligns with the International Monetary Fund (IMF), which, in a recent report, highlighted that stablecoins could slash remittance costs by 50%.

Such a reduction would directly benefit migrants' wallets and heighten the dollar's influence in global trade, ultimately aiding the U.S. in maintaining its financial standing on the world stage.

Bitcoin's price at the beginning of April 2025 was $83,487, having reached a peak of $108,000 in January 2025.

While Bitcoin has certainly captured attention with its wild price swings, it might not be the best bet for daily use, especially considering its high price point.

In contrast, stablecoins, which are pegged to the U.S. dollar, offer stability and are valued at around $1, provide a more practical and cost-effective solution for everyday transactions.

Stablecoins combine the swiftness of blockchain technology with the dependability of the dollar, rendering them ideal for seamless payments, as opposed to Bitcoin, which is more commonly held as an investment or store of value.

This property of stablecoins is crucial for cross-border money transfers, which are typically slow and expensive with traditional banking methods, as the IMF in its 2024 report attests.

This is where stablecoins come in, offering a more efficient and less costly alternative, especially for merchants and migrants sending money back home.

The implications of this shift are significant, especially in the context of the U.S. government's active role in shaping the regulatory landscape for cryptocurrencies.

With the administration aiming to position the U.S. as the leading global crypto hub, the focus on stablecoins appears to be a strategic move.

The administration is cognizant of the issues surrounding Tether and the scrutiny it has faced regarding the adequacy of its reserves to fully back outstanding tokens.

This lack of transparency has been a subject of contention among regulators. However, the U.S. is keenly aware of the need for a robust regulatory framework to foster trust and confidence in the cryptocurrency market.