In this episode, Nik is joined by TBL researcher Demian Schatt to break down the Genius Act, stablecoins, and their impact on Bitcoin and the U.S. dollar system. Nik explains how declining foreign demand for Treasuries is being offset by domestic buyers, and why stablecoin growth, especially Tether, now plays a key role in global dollar infrastructure. He introduces the idea of Tether as an emergent world reserve asset, outlines why Washington sees it as a threat, and connects the Genius Act to national security concerns rather than just crypto regulation. The conversation finishes with Bitcoin’s role in a multi-reserve future, and how stablecoins may accelerate its adoption as the fiat system continues to dilute.
🔗 Links & Sources:
• https://www.ark-invest.com/articles/analyst-research/stablecoins-as-a-us-financial-ally
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Nik Bhatia’s Twitter: https://twitter.com/timevalueofbtc
Creative Director Matthew Ball’s Twitter: https://twitter.com/matthewrball
Researcher Demian Schatt’s Twitter: https://x.com/demianschatt
Lead Statistician Augustine Carrasco Twitter: https://x.com/AugustineCarrB
❗ The Bitcoin Layer and its guests do not provide investment advice.
Chapters:
00:02:56 Declining Foreign Demand for US Treasuries
00:05:51 The Impact of Bond Volatility on Risk Assets
00:08:48 Tether’s Role as a World Reserve Asset and Its Implications
00:12:08 Tether as a World Reserve Currency
00:14:33 The Rise of Tether as a Global Reserve Asset
00:17:39 Understanding Tether and Its Implications
00:20:35 The Evolution of Dollar Holdings: Treasury Bills vs. Stablecoins
00:23:16 Understanding Bitcoin’s Network Growth
00:26:28 Impact of Digital Currency and Stablecoins on Bitcoin
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