The GENIUS Bill -Why Now?

“The next chapter of money is here—instant, digital, and eying for global dominance.

MONEYMONEY

Krv

8/4/20256 min read

Imagine handing someone cash across the ocean as easily as passing a note across the table. No long waits, no crazy bank fees, and no more “international transaction failed” notifications at 2 AM. The U.S. just rolled out a plan to make that world real—and it comes in the form of the GENIUS Act. On the surface, it’s a big win for stablecoins—digital dollars that live on blockchains. But under the hood, it’s a strategic move with huge implications for crypto, gold, and global finance and geopolitics.

What is the GENIUS Act?

The GENIUS Act is America’s way of saying, “Okay stablecoins, you can play in the global money game, but here are the regulations you must adhere to." In short, stablecoins must be backed one-to-one by real dollars or super-safe U.S. Treasury bonds, and they can only be issued by U.S. banks or government-approved issuers.

This move removes the "Wild West" vibe from crypto stablecoins, because if you hold a $1 stablecoin, there’s actually $1 sitting safely behind it. Stablecoins are issued as electronic "digital tokens" and credited to your electronic wallet when a deposit, say $10,000, is made. Most importantly? This act turns the USD into a 24/7, globally usable, digital super-dollar.

With this system in place, U.S. institutions gain huge strategic and financial advantages. They earn interest and yield primarily on the reserves backing the coins and from the sheer scale of transactions they will handle. Meanwhile, users enjoy the benefits of speed, convenience, and global accessibility, able to send and receive digital dollars almost instantly, often with very low fees. However, users do not earn any interest [as of now] on the stablecoins they hold, meaning that while the system is faster and more efficient, the financial upside remains with the issuer. Such speed and convenience are possible because of blockchain technology. The current financial messaging system SWIFT, doesn't use blockchain, charges higher fees, and is far slower than the proposed efficiencies of stablecoins. Well, with all these benefits in the new system, it does behoove us to ask the question, "Has the U.S. decided to lose the lucrative fees generated through SWIFT ?"

The Strategy: Trading SWIFT Fees for Dollar Dominance

On the surface, it looks like the U.S. may be giving up bank fees generated by SWIFT and control over money flows, but in reality, it could be a calculated trade-off. While billions are earned in fees through SWIFT, the real prize is global USD dominance.

If the dollar isn't made fast, digital, and convenient, other players—like China’s digital yuan, BRICS settlement systems, or even crypto like Bitcoin—could take that role. By sacrificing SWIFT bank fees, the U.S. ensures that the world continues to use the USD in its new digital form. This could be called a "Strategic Dollarization"—winning the digital currency war and the battle for global currency leadership in a multipolar world.

In many ways, this shift mirrors the seismic changes of 1971 in global finance. In 1971, the U.S. “gave up” gold backing, shocking the world—and gained complete monetary freedom, keeping the USD as king. Fast forward to 2025, and the U.S. could be “giving up” SWIFT fees—but digitally cementing USD dominance for the next era. It’s a huge geopolitical leverage for the U.S., allowing America to continue to use sanctions, if necessary or restrict stablecoin flows just as it does with the USD.

Stablecoins vs. Gold: Can Digital Dollars Replace the Old Safe Haven?

Stablecoins make money faster-to-move and cheaper-in-fees to use, but they are still tied to the U.S. financial system. Gold, however, still sits outside the system entirely and has been a trusted commodity that people and countries rely on during crises. Gold-backed stablecoins may grow, but they will complement, not replace, physical gold. Gold back stablecoins, while good, will not be a good bet for the U.S., since it defeats the purpose of shoring up the Dollar's dominance. Countries will continue to hold and accumulate gold. They will use stablecoins for trade efficiency but hold gold for independence, to avoid being controlled or sanctioned through USD digital dominance.

From Bretton Woods to the GENIUS Act

This isn’t the first time the U.S. has reshaped global finance to its advantage. They did it in 1944 at Bretton Woods, when the USD was pegged to gold and other currencies were pegged to the USD, making America the world’s banker. In 1971, then-President Nixon delinked the USD from gold and turned it into a FIAT currency, forcing the world to use the USD for trade and reserves. The rest of the world did not like it, they were forced to adapt, since they had no other recourse.

In 2025, with the GENIUS Act, the US has initiated a massive change, going "digital through stablecoins". The world will voluntarily adopt the digital USD for convenience, since, it's difficult for them to move away from the USD dominant established system. Yet, it's hard to ignore the fact that they will become more dependent than ever. This is Digital Bretton Woods, and it’s happening quietly.

The Future of Money

Here’s what’s coming in the next decade: We’ll be moving into an Instant Global Payments era, where sending money is like sending an email—instant and quick. Money becomes programmable. This means digital money can be programmed to follow instructions automatically instead of relying on people or banks to manually move it.

In traditional methods, if you want to pay someone, you have to actively send it. Each transaction is a separate, conscious action, and banks were the middlemen who checked and approved it.

With stablecoins on a blockchain, every transaction is recorded in a secure, tamper-proof ledger. Smart contracts—small pieces of code stored on the blockchain—allow money to move automatically when certain conditions are met. Instead of relying on a bank to verify and release payments, the blockchain itself enforces the rules.

In simple terms: imagine you are importing coffee beans. You can lock your payment into a smart contract on a blockchain. The money will stay there until the shipping company confirms delivery on the blockchain. The moment delivery is verified, the stablecoins are automatically released to the seller—no emails, no SWIFT transfers, and no bank approvals.

Because the blockchain is decentralized and always running, this system works 24/7, globally, and without manual intervention. It also means your money can have built-in conditions, like payments that expire if unused, loyalty rewards that activate only when certain purchases are made, or even taxes that auto-deduct when a transaction is completed.

In short, blockchain turns money from a static store of value into an active, rule-following participant in digital trade, unlocking speed, automation, and efficiency that traditional banking rails simply cannot match. This shift makes money behave more like software than just a static currency. Instead of needing people to process every transaction, money movement tasks will be automatically executed when the right triggers occur. It opens doors for faster trade, complex automated business contracts, and even machine-to-machine payments, where, for example, your electric car could pay a charging station automatically the moment it finishes charging.

In simple terms, programmable money turns money into an active participant, not just a passive tool—it moves, responds, and acts according to preset rules, all without waiting for a human to push the button.

The Last Line of Defense Against Crises

In short, the GENIUS Act is more than crypto regulation. It’s a digital power move to secure U.S. financial dominance, but it's also a wake-up call for anyone relying solely on fiat money. Stablecoins will make life faster and easier, but they come with new risks. Gold will remain your ultimate lifeboat in a digital, multipolar world.

IF YOU ARE INTERESTED IN MY HISTORY - SORRY, 'ME' BEING THE USD - CHECK THE LINK -