Israel and China expand digital currencies... Will it shake the status of US stablecoins?

Source: DigitalToday Original Title: Israel and China Expand Digital Currencies… Could This Shake the Status of US Stablecoins? Original Link: https://www.digitaltoday.co.kr/news/articleView.html?idxno=609251

Israel and China are intensifying their digital currency expansion, challenging the United States' dominance in stablecoins.

According to blockchain media, Israel is accelerating its digital shekel plan, while China continues to expand its digital yuan. These moves are interpreted as a global shift that threatens the influence of US dollar-based stablecoins.

Stablecoins have emerged as a key element in the digital asset market, with monthly trading volumes exceeding $2 trillion and a market capitalization surpassing $310 billion. Most are dollar-based, and companies like Tether and Circle have risen as crucial components of the global payment infrastructure. In response, governments around the world are implementing regulations to limit the expansion of stablecoins.

Israel is strengthening regulations on stablecoins and promoting the digital shekel. Amir Yaron, the Governor of the Bank of Israel, recently announced a strong supervisory policy regarding stablecoins at a conference held in Tel Aviv. He warned that “Tether and Circle dominate the market, and if there are issues with their reserves or assets, it could affect the entire financial system.” Governor Yaron assessed that “stablecoins are no longer a niche market and have grown to the scale of medium-sized international banks.” Accordingly, Israel is accelerating the development of the digital shekel in order to reduce reliance on private digital assets.

China is also taking strong countermeasures. The People's Bank of China is reinforcing a broad ban on cryptocurrencies, blocking stablecoin activities, and closing remaining loopholes. Chinese authorities claim that digital assets facilitate money laundering and capital flight, and are not granting them legal tender status. At the same time, the digital yuan ( e-CNY ) is rapidly expanding. The People's Bank of China ( PBOC ) recently announced that e-CNY transaction volumes have doubled in 14 months, reaching $2 trillion by September. Pilot programs are underway in major cities, public sector payment systems, and some commercial channels, through which the digital yuan is becoming deeply embedded in everyday financial activities.

China is accelerating the digital yuan while excluding stablecoins, particularly aiming to reduce its dependence on the US dollar-based financial system. Unlike Israel's cautious approach, China is expanding its own digital currency through strong regulation. This is interpreted as part of a global movement to weaken the dominance of US stablecoins.