STABLECOIN SPECIAL: BANKS, RISKS & CHINA UNVEILED
Let's welcome the new digital dollar and GENIUS Act risks and all!
Edward Hopper, Sea Watchers, 1952. A couple on a beach, seemingly lost in their own thoughts, with a backdrop of the sea and angular rocks. The painting, characteristic of Hopper's style, evokes a sense of isolation and introspection
Thanks for reading the “Cashless” newsletter, an insider’s view on Asia’s fintech, CBDC, and AI for anyone striving to understand “the Asia Century.” I’m Rich Turrin, and these are my hard-hitting insights designed to educate and inform. Subscribe to get these emerging trends directly in your inbox every Sunday. Every week, I scan thousands of articles to find only the best and most valuable for you. Subscribe to get my expertly curated news straight to your inbox each week. Free is good, but paid is better.
Topics:
Part 1: Banks Bet Big on Stablecoins Joining in $250B Boom
Part 2: Banks Spend Heavily on Blockchain Innovation
BIS Hits Stablecoin Threats to TradFi Stability and Monetary Sovereignty
Offshore RMB Stablecoins Coming to Hong Kong
Bonus Read: Quantum Powers FinServ Growth Beyond Risk
Your Survival Guide to the GENIUS Act Premium subscribers only. Understand and avoid the risks that no one is talking about!
Money Disrupted: The Definitive Collection of Stablecoin Resources Premium subscribers only. Everything you need to see through stablecoin hype and become an expert to stay ahead of the curve
Happy Sunday! (or Monday)
What a week! With the passage of the GENIUS Act, we now have stablecoins as the US’s official digital dollar.
Let me state upfront that while I am pleased that the Act has been passed, I do think that the issues with putting them to work and their risks have been grossly minimized.
Now that they are regulated, we can at least start to work our way through these risks, with the hope that stablecoins achieve broad acceptance as a payment option.
Let’s be honest, stablecoin’s nearly-instantaneous, low-cost peer-to-peer payments are a big leap over Visa and Mastercard, even with some of its problems.
Still, they are not without risk, and in our stories today, I cover their very real risk to monetary sovereignty and stability.
The announcement this week that JPMorgan and Citibank are both building stablecoins and deposit token solutions was a shocker and shows how banks are not leaving stablecoins to crypto!
That said, the real story is that both banks are hedging their bets on stablecoins with active deposit token programs.
The notion that banks would surrender their key role in payments to stablecoins is absurd, and you can expect them to double down on deposit tokens to maintain it.
Banks will want to corner as many payment markets as possible.
Given all of these developments, we have a special two-part series on banks and stablecoins, and blockchain.
In a TV interview and article, I discuss how China looks to be set to enter the stablecoin race through Hong Kong. While its offshore RMB stablecoin is targeted at trade, if successful, it may decrease dollar dominance.
US proclamations that US stablecoins will promote dollar use seem to ignore that other nations can issue them too.
I also have two special articles today on stablecoins that are open only to Premium subscribers.
The first is “The Survival Guide to the Genius Act,” which covers everything you need to know to avoid the risks. It includes a discussion on the Act and the best resources from my personal library.
The second “Money Disrupted” is a curated collection of my best articles that will help you become an expert. I promise that this article contains “the good, bad, and ugly” of stablecoins.
Today’s bonus read is an optimistic read from the WEF that focuses on the good that quantum computing can do in financial services. Most reports focus on quantum’s risk, but it will also bring great rewards!
This was also a sad week as the Anti-CBDC Surveillance State Act also passed, which outlaws a US CBDC. As a fan of CBDC, this hurt!
Worst of all, the Act actually bans the Fed from conducting CBDC research! This was so draconian and senseless that it made me sad. What’s next, book bans?
Thanks once again for reading. I appreciate each and every one of you taking the time to open your inbox for me!
Rich
PS
Thanks for sharing with your friends! It’s a great way to say thanks.
Part 1: Banks Bet Big on Stablecoins Joining in $250B Boom
Master the stablecoin tech stack now for your future
What makes this report by 51 and Fintech Blueprint special is that it lists the names of all key stablecoin ecosystem players and explains what they all do for the best 101 guide I’ve seen!
Breaking down the “stablecoin payment stack” into its pieces will help you master this new architecture for money transfers and allow you to follow what’s going on in this $250B market.
Read on to master the stablecoin tech stack….
Part 2: Banks Spend Heavily on Blockchain Innovation
Global banks are making their move
Today’s news that Citibank and JPMorgan are pursuing both stablecoins and deposit tokens proves how banks are finally diving into blockchain and investing heavily.
This report by Ripple, CB Insights, and UKCBT shows how nearly a decade after the blockchain craze first broke in 2016, banks are putting production blockchain systems to work and making serious investments.
Read on to see why it took banks a decade to use blockchain…..
BIS Hits Stablecoin Threats to TradFi Stability and Monetary Sovereignty
Stablecoins have real risks associated with them, which will hinder adoption
The BIS is once again warning about stablecoins, this time claiming that the increasing linkages to the traditional financial (tradfi) system are creating new risks for regulators.
The response from the crypto community will remain the same; they will once again claim that the BIS is biased and call it a grandpa who knows nothing.
Read why we ignore the BIS’s warnings at our peril….
Offshore RMB Stablecoins Coming to Hong Kong
In a breakthrough, China will likely allow the creation of an RMB stablecoin
Big news in Hong Kong as starting August 1, it will launch its stablecoin licensing program, allowing digital currencies pegged to fiat currencies like the yuan, dollar, euro, and Hong Kong dollar.
While still unresolved, the big question is whether this will allow license holders to create an offshore digital RMB stablecoin that could be used to facilitate RMB-valued payments and potentially challenge the dollar.
Your Survival Guide to the GENIUS Act (Premium Subscribers Only)
Avoid the Risks that No One is Talking About!
Dear Premium subscriber, thanks for your support! I thought that that as the GENIUS Act is making stablecoins the de facto “digital dollar,” we needed a place to look at the Act in detail.
I support the “Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025” or GENIUS Act, but dislike the hype surrounding stablecoins.
Money Disrupted: The Definitive Collection of Stablecoin Resources (Premium Subscribers Only)
Everything you need to see through stablecoin hype and become an expert to stay ahead of the curve
Dear Premium subscriber, thanks for your support! This special article is a curated collection of my best articles that discuss stablecoins. I promised “the good, bad and ugly” and I guarantee that my articles will do just that.
“Crypto bros” would have us believe that stablecoins are a form of digital nirvana. While they are useful, many problems need to be solved before they are unleashed on the general public as a means of daily payment.
Bonus Read
WEF: Quantum Powers FinServ Growth Beyond Risk
The WEF with an upbeat report on quantum that will inspire you with how it will transform and GROW finserv, not just scare you with risk.
This is a fabulous report because it focuses on the rewards, quantum will bring, which seem to be too often left out of the conversation.
Maybe you've noticed, as I have, that quantum tech is always seen as something to be feared.
The reason why is that it's easier to sell quantum consulting services with the fear of imminent dire risk than the potential of future rewards!
Fear sells, while future profits are easier to defer.
So this weekend, find time to be inspired by our quantum future, not just afraid of it.
Hot Topics for Premium Subscribers only
Imagine having someone combing through thousands of articles, over 50 RSS feeds, and 25 meticulously crafted Google searches—all to handpick the absolute best reports, just for you.
Each week, I distill this ocean of information into five concise, high-value reports, sharing the most essential knowledge you need to stay ahead.
But that’s not all. I also collect additional exclusive, hard-to-find gems, which I put in the section below—all in PDF format with my brief expert commentary.
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The APAC State of Open Banking and Open Finance Report
The Asia-Pacific (APAC) region is undergoing a profound transformation in financial services, driven by frameworks to enable the secure and transparent sharing of data – the most critical asset in the modern financial ecosystem.
Artificial Intelligence: Everything, Everywhere, All At Once: Insights on SEA Consumers AI adoption
This report shows how SE Asian consumers are adopting AI. Read the three primary drivers:
AI Act Governance: Best Practices for Implementing the EU AI Act
This whitepaper captures solutions that appliedAI and its partners developed together through two parallel working groups.
And that’s just three of SIX PDF reports. You’re also missing the infamous Chart of the Day, which today covers: Asia’s love of AI is its “secret weapon.”
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