The Genius Act is creating a "digital Chaoshan bank" to "liquefy" the US dollar - it not only allows you to settle in US dollars, but also makes the US dollar "circulate itself", become the default unit in your wallet, become the unit you unconsciously rely on for saving, investing, settling, consuming, and getting married, and become the indispensable "water" in life.

The Genius Act allows residents of other countries who previously could not access "physical US dollars" due to foreign exchange controls to access, use, store, pay, and even use US dollar stablecoins for settlement in a compliant, legal, and secure manner, thereby allowing the US dollar to penetrate into every aspect of the world.

1. The “Global Colonial Code” of the Spanish Silver Dollar

In the early 16th century, Spain was just a kingdom in the southwest corner of the Iberian Peninsula, but it became the world's first real "world empire". Spain's invincible fleet swept across the Atlantic and Pacific Oceans, from the American continent to the Philippines, from the Peruvian Plateau to Manila Bay, and established a huge colonial system across three continents.

It brought gold, silver and spices, but also brought plague, the church and the financial order of the Spanish monarchy. More importantly, it brought the world's first truly global currency: the Spanish silver dollar (Piece of Eight) .

This silver coin was minted on a large scale, mined in the Americas, changed hands in Manila, and became a medium of exchange for tea, porcelain, and silk in China. Even the "silver standard" system of the Qing Dynasty was shaped to some extent by the Spanish silver dollar.

For the Spanish colonial system, the key is not to enslave the local people or to seize local resources, but to settle accounts.

The silver dollar enabled the Spanish royal family to establish a cross-continental financial chain. Silver was not only a symbol of wealth, but also the physical carrier of the empire's credit.

2. Genius Act: Digital Silver Dollar and the New Colonial Method of the US Dollar

In July 2025, the United States signed the GENIUS Act, a technical bill that seems to regulate stablecoins, but it may mark the beginning of a new era of digital colonization of the US dollar . The essence of this bill is to further expand and consolidate the hegemony of the US dollar, so that countries and people who cannot access the US dollar due to foreign exchange controls, financial sanctions, and currency depreciation can access, use, store, pay, and settle US dollars in the form of blockchain stablecoins.

This is a way to export sovereignty that no longer relies on the banking system or military deployment. Just as Spain used silver dollars to penetrate the financial systems of three continents, the United States now uses stablecoins as "digital silver dollars" to penetrate local economic sovereignty.

The on-chain US dollar stablecoin is the Piece of Eight of the digital age.

A brief analysis of the Genius Act: Regulation is only one of its many "functions". The key is the protocolized financial expansion, which allows the US dollar to flow into "low-lying areas" around the world like "water". (Low-lying areas: areas where local legal currencies are unstable)

The Genius Act not only establishes a federal framework for the issuance of stablecoins, but more importantly, it establishes several far-reaching mechanisms:

• All payment stablecoins must have 1:1 real reserves , and the supporting assets are limited to cash, US Treasury bonds or FDIC deposits;

• Stablecoin issuers must be federally chartered banks or state-regulated institutions recognized by the OCC;

• Prohibiting the payment of interest to prevent it from competing with bank savings, but at the same time providing the advantages of instant settlement and cross-border payments on the chain ;

• Foreign issuers also need to establish local reserves and compliance frameworks if they want to circulate in the U.S. market.

The underlying logic behind this is that the United States not only wants to regulate the dollar stablecoin, but also wants to create a standardized template for a programmable dollar - that is, dollar sovereignty at the protocol layer.

In other words, the Genius Act does not clamp down on innovation, but opens up the Web3 API for the US fiscal and dollar clearing mechanisms. It provides a legal identity for stablecoins such as USDC, which are themselves “tokenized” mappings of US Treasury bonds and US dollars.

In an on-chain clearing network, stablecoins are like the Spanish silver dollars of the past, a permissionless global medium of exchange.

3. The flow of US dollars on the chain: the geopolitical logic of digital colonization

The biggest feature of on-chain stablecoins is their permissionlessness and programmability. Once USDC is embedded in a country’s local payment system or e-commerce platform, it is no longer a “foreign currency” but a digital infrastructure that automatically completes payment, settlement, clearing, storage and even wealth management through smart contracts.

For countries that are experiencing currency depreciation and capital controls, stablecoins have become a refuge for ordinary people seeking a "dollar anchor" in the underground financial market. According to Chainalysis's research, in 2024 alone:

• Chainalysis and other reports highlight Nigeria’s use of a “faucet” for African stablecoins;

• Argentina’s stablecoin and cryptocurrency P2P usage is growing rapidly;

• Stablecoin on-chain payment volumes in Vietnam, Lebanon, and Türkiye continue to hit new highs;

• More than 30% of global stablecoin transactions take place in "non-OECD countries," where the traditional U.S. financial system has weak coverage.

Case Study: Argentina and Nigeria — How On-chain Dollars Infiltrate the “Gray Area”

• Argentina: Long plagued by hyperinflation and strict capital controls, local residents are restricted from purchasing foreign exchange, and the US dollar has become an informal sovereign currency for private storage and transactions. Since 2023, on-chain wallets such as MetaMask and local wallet Belo have been connected to USDC to help Argentines bypass the banking system to obtain "digital dollars." Argentines have begun to use stablecoins to pay rent, wages, online shopping, and even settle cross-border freelance work.

• Nigeria: After the ban on crypto trading, Nigerian users continue to trade USDT/USDC on a large scale through peer-to-peer markets. Stablecoins have become the default tool for scenarios such as import trade, tuition payment, and technology export. Tether mentioned in its 2024 report that Nigeria is one of the countries with the "largest USDT on-chain holdings among non-US dollar countries."

These two countries show a surprising fact: local residents no longer rely on local banks as the entry point to the US dollar, but rely on wallet addresses on the chain. The local government's foreign exchange control restrictions on the US dollar are almost ineffective.

4. Do stablecoins allow Chinese users living in the mainland to “hold US dollars”?

If you think that Chinese people cannot own US dollars due to capital account controls, then you underestimate the power of on-chain protocols. By holding USDC and USDT in on-chain wallets, many Chinese users have "deposited US dollars" in practice, and even used them to participate in global on-chain financial management (such as Real USD T-Bill). Although these behaviors are not officially supported, they are difficult to prohibit. A few days ago, the news that Yiwu merchants accepted stablecoin payments was obviously not groundless.

Stablecoins are digital forms of dollar securitization penetration tools . They turn the dollar into a "code asset" that can circulate peer-to-peer, bypassing the banking system and entering the wallets of any Internet user in the world. This will break the traditional sovereign capital boundary. The passage of the Genius Act will provide legal protection for such behavior.

5. The wisdom of Chaoshan money houses: the real financial control lies in “circulation”

In the ancient Chinese money-making system, the Chaoshan merchants’ business philosophy was: “The way of money-making is not in settlement, but in circulation.” This means that controlling the liquidity of funds is far more valuable than controlling a single settlement.

The money shop owners in Chaoshan are often not in a hurry to settle accounts. Instead, they encourage their customers to keep their money in the system and circulate it frequently between business travelers through bills of exchange, ticket numbers, transfers, etc., thereby promoting the binding of information, credit, logistics and relationships.

Chaoshan people know very well that they should treat "money" like "water". Water flows to the lower places, and flowing water will flow down by itself, flow to every gap, flow to every aspect of life, and flow to every value depression.

The Genius Act is essentially creating a "digital Chaoshan money house" to "water" the US dollar - it not only allows you to settle in US dollars, but also makes the US dollar "circulate itself", become the default unit in your wallet, and become the unit that you unconsciously rely on for saving, investing, settling accounts, consuming, and getting married.

When the US dollar stablecoin becomes a kind of "digital air" in life, it is no longer just a currency, but the heartbeat of the financial order.

6. The new colonial system built by blockchain

The Genius Act is not a regulatory framework, but a far-reaching restructuring of monetary infrastructure.

It is not "compliance rules for stablecoins" but "reinvention of the US dollar" - allowing the US dollar to invade any area that has not yet been dollarized in the form of code and on-chain contracts .

The US dollar will no longer rely on US banks, the SWIFT network or military hegemony, but rather on users' browsers, wallet plug-ins and protocol APIs.

Just imagine, if there is another Russia-Ukraine war, the United States will no longer kick Russia out of the SWIFT settlement system, but will directly freeze Russia's US dollar stablecoin. How destructive would that be!

Just imagine, if there is another tariff war, the United States will no longer negotiate tariff policies with China, but will directly freeze all US dollar stablecoins in wallet addresses that have transactions with the Chinese government. How desperate would that be!

Just as Spanish silver dollars penetrated the global trade system through sailing ships, on-chain dollars will penetrate all digital economic ecosystems through smart contracts.

GENIUS is the Web3 protocol standard for the US dollar, and it is also a global digital colonization without the smoke of gunpowder.

The new world financial order is no longer dominated by bankers, but by codes, contracts and stablecoin providers. And all this is being done right before our eyes.

The digital invincible fleet has set sail, stablecoins are silver dollars, protocols are sea charts, on-chain wallets are ports, and all of us are waiting at the ticket gate .