Why America’s Stablecoin Plan Could Hand China the Upper Hand (and Trigger Chaos)!

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Ah, America. Always aiming for the stars with a shiny new financial toy. The GENIUS Act? Well, the United States has made it clear-they’re all in for a stablecoin-based future, hoping to keep the dollar firmly in charge of the global economy. But, as Yanis Varoufakis, the Greek economist and former finance minister, so eloquently puts it, this could go down in flames faster than a 2008-style disaster.

In an exclusive chat with BeInCrypto, Varoufakis warned that this legislation might spark a financial crisis even worse than the one that wrecked the world over a decade ago. Meanwhile, he argues China is playing the long game with its tightly controlled economic approach-could they actually have the better plan here?

The US’s Grand Plan to Keep Dollar Power

Ever since the days of Bretton Woods, America has held on to global dominance through one main thing: financial might. Sure, it had a thriving industrial base once upon a time, but that’s largely gone now. So what does Washington have left? Two things: Silicon Valley’s grip on Big Tech and the almighty dollar that dominates international payments.

And, oh, how sweet that leverage is! With most global transactions running through the US financial system, Washington can do what it does best: impose sanctions, run deficits, and keep its grip on geopolitics. Not bad for a currency, huh?

“If you want to send money from anywhere to anywhere, you have to go through the dollar system… That’s why [the US is] using sanctions as a weapon against anybody they don’t like, for better or for worse,” Varoufakis quipped, adding, “It’s the hegemony of the dollar that makes America not great, but strong. And they know that if they lose that, they’re finished.”

So, what’s the new strategy? Stablecoins. That’s right, instead of traditional banking, the US is turning to crypto-based infrastructure to keep the dollar’s grip intact. What could possibly go wrong?

The Mar-a-Lago Accord and Dollar Devaluation: A Stablecoin Dream

In November 2024, Stephen Miran-Trump’s buddy and now a Federal Reserve Board member-introduced a master plan: the Mar-a-Lago Accord. The idea? Devalue the dollar just enough to cut trade deficits and revive US manufacturing, all while keeping the dollar as the global reserve currency. Genius, right?

“On one hand, [Miran] wants to reduce the exchange value of the dollar. On the other hand, he wants to keep the dollar as the main payment system in the world,” Varoufakis explained. Well, Miran’s juggling two flaming torches and hoping he doesn’t burn down the circus.

🛃🔙 Nearly a year after Stephen Miran introduced the idea of a “Mar-a-Lago Accord” – a coordinated effort to engineer a controlled USD devaluation – the concept feels more relevant than ever.

📊 As our new 𝐈𝐆𝐖𝐓 𝐂𝐡𝐚𝐫𝐭𝐛𝐨𝐨𝐤 𝟐𝟎𝟐𝟓 shows, history rhymes: every major…

– In Gold We Trust (@IGWTreport) November 3, 2025

The GENIUS Act fits nicely into this vision, pushing the US further into a regulated stablecoin economy that will, of course, reinforce the dollar’s dominance. But Varoufakis? Not so impressed. He’s seeing it as a fast track to disaster.

When Stablecoins Turn Into a Global Mess

So here’s the catch: the GENIUS Act lets private banks and issuers take the wheel on stablecoins. Varoufakis sees this as another symptom of the age-old problem: a government held hostage by Wall Street.

“We know that the Federal Reserve is not an independent central bank. It’s independent of the American people and Congress, but it is totally dependent on JPMorgan and Goldman Sachs… Its role is to do a little bit of regulation, nothing that annoys Wall Street too much,” Varoufakis said, basically calling out the whole system.

And don’t even get him started on the disaster potential. If a major stablecoin collapses-due to mismanagement, speculation, or sheer incompetence-the ripple effect would be felt worldwide. Foreign economies using dollar-backed tokens would be completely helpless, because, well, they can’t print dollars to save their skin. Oops.

“As we speak, there are Malaysian companies, Indonesian companies, and companies here in Europe that increasingly use Tether… which is a huge problem,” Varoufakis added. You know, just a casual international financial crisis waiting to happen.

That failure? A global chain reaction. A self-inflicted crisis by the country that’s been outsourcing its financial empire to the same institutions that almost took it down in 2008. Hooray, America!

“Just like in 2007-8, when the whole thing goes pear-shaped, there will be second and third generation effects that will have negative repercussions in the United States. So I think that this is going to be the next financial crisis coming out of the stablecoin market.”

Meanwhile, over in China, they’re playing a different game altogether. A game where the government actually plays by its own rules, instead of letting Wall Street run wild.

China’s Controlled Capitalism: A Win-Win

Varoufakis points out that while US financial power answers to Wall Street, China’s economy answers to the state. Private companies can profit, but there’s a strict leash. It’s not exactly free-market capitalism, but hey, it works.

“You may call this authoritarianism, I call it prudent,” Varoufakis said, probably while shaking his head at Washington.

In China, Big Tech and finance aren’t competing with one another-they’re integrated. Think WeChat Pay and the digital yuan: a unified, efficient payment system, all under state control. It’s a beautiful thing… or at least, it’s a stable thing.

China’s share of the world’s manufacturing value added has rocketed to 33% while the West has tumbled down.

“China’s Lu Feng sees the US-China rivalry ultimately as a contest between two systems: China’s “industrial socialism” and America’s “financial capitalism”.

” The US was…

– Michael Dunne (@dunne_insights) June 19, 2025

The US, however? Well, Wall Street won’t let that happen. It’s not going to be easy to integrate digital payments with credit and banking-it would spoil the party.

“You may recall that Mark Zuckerberg some time ago tried to introduce his own Facebook cryptocurrency and he was smacked down by Wall Street with the help of the Fed,” Varoufakis noted. So much for innovation!

In the end, Varoufakis is clear: China’s got the right idea, while the US has gotten it spectacularly wrong. If Adam Smith could see this, he’d be spinning in his grave. Political chaos in the US? Check. Technological brilliance, but no vision? Also check. So, who’s going to win this global battle?

“To me, the Chinese have got it right, and the United States have got it… sensationally wrong… I believe that if Adam Smith was alive today, the guru of free market capitalism, he would have agreed with what I’m saying. He would have been aghast with what’s going on in Washington and New York,” Varoufakis emphasized.

The outcome of this financial chess game could determine who rules the global economy. Spoiler alert: it’s not looking great for Uncle Sam.

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2025-11-04 19:01