Arthur Hayes Long Article: $10 Trillion Entry, America's Stablecoin Conspiracy and Decentralized Finance Big Opportunity

Arthur Hayes expects the total number of U.S. dollar stablecoins to reach $10 trillion in 2028, and their global popularity will drive long-term growth in DeFi applications such as Ethena, Ether.fi, and Hyperliquid. This article is based on an article written by Arthur Hayes, translated by Golden Finance and compiled and written by Foresight News. (Synopsis: Arthur Hayes predicts: Bull market continues into 2028, US stablecoin policy ignites trillion dollar business opportunities) (Background supplement: Arthur Hayes latest interview: autumn callback, ETH long-term look at $1-20,000) U.S. Treasury Secretary Scott Bessent (Scott Bessent) deserves a new nickname. I previously named him BBC, short for Big Bessent Cock. Yes, his devastating "second brother" is destroying the status quo of the global financial ecosystem, but the nickname does not fully characterize him. I believe he needs a more appropriate name to describe the pain he will inflict on two very important components of the fiat (fugazi) financial system: the Eurodollar banking system and foreign central banks. Like the serial killer in the movie The Silence of the Lambs ( it's definitely a fucking classic worthy of a "Netflix and Chill" night ) for any unstarted young man, Scott S. Buffalo Bill "Becent" is on the verge of wiping out the Eurodollar banking system and taking control of foreign non-dollar deposits. Just as slaves and trained legions maintained the "peace under Rome" (Pax Romana), slaves and dollar hegemony maintained the (Pax Americana) "peace under America." The slavery aspect of "peace under American rule" doesn't just refer to the historical transportation of Africans to pick cotton; The whip of the modern era is "monthly payments," and generations of young people willingly carry debts that crush life in order to obtain worthless credentials in the hope that they too can work at Goldman Sachs, Sullivan Cromwell Law Firm (Sullivan & Cromwell) or McKinsey. It is a broader, more insidious and, ultimately, more effective means of control. Unfortunately, now that the United States has AI (AI), these debt bulls are about to lose their jobs...... Put on blue-collar overalls, man. I'm pulling away. This article will discuss the "peace under the United States" control over the global reserve currency: the dollar. Successive US Treasury secretaries have brandished the dollar stick with varying degrees of success. The most notable failure was to allow the emergence of the Eurodollar system. The Eurodollar system emerged in the 1950s and 1960s to circumvent U.S. capital controls ( such as Regulation Q ) circumvent economic sanctions ( the Soviet Union needed a place to store its dollar ), and to provide banking services for non-U.S. trade flows during the post-World War II global economic recovery. The monetary authorities of the time could have recognized the need to supply dollars to foreigners and allowed the Bank of the Domestic Monetary Center to take control of the business, but domestic political and economic concerns required a tough stance. As a result, the Eurodollar system grew to an unknown size in the following decades and became a force to be reckoned with. An estimated $10 to $13 trillion of Eurodollars flows in various non-U.S. bank branches. The ebb and flow of these capitals led to various financial crises in the post-World War II era, which always needed to be solved by printing money. This phenomenon was discussed in an August 2024 paper by the Atlanta Fed titled "The Offshore Dollar and U.S. Policy." For Becent, there are two problems with the Eurodollar system. The first problem is that he simply does not know how many eurodollars exist and why they are being financed. The second problem, and most importantly, is that these Eurodollar deposits were not used to buy his junk bonds. Is there a way to solve these two problems? With that in mind, let me quickly talk about the foreign currency holdings of non-U.S. retail savers. De-dollarization is real. It really started in 2008, when the monetary masters in the United States decided not to let banks and financial institutions fail because of their bad bets, but to bail them out by launching an unlimited quantitative easing (QE Infinity). A useful indicator of how global central banks hold trillions of dollars in denominated assets is the percentage of gold in their reserves. The higher the percentage of gold a person has in their reserves, the less they trust the U.S. government. As you can see in the chart above, after 2008, the percentage of gold in central bank reserves bottomed out and began to rise for a long time. THIS IS THE TLT US ETF, WHICH TRACKS THE MOVEMENT OF U.S. TREASURIES WITH MATURITIES OF 20 YEARS OR MORE DIVIDED BY THE PRICE OF GOLD. I started setting its index to 100 in 2009. Since 2009, Treasuries have lost nearly 80% of their value relative to gold. The U.S. government's monetary policy is to bail out its banking system while harming both foreign and domestic debt holders. No wonder foreign central banks are beginning to emulate Scrooge McDuck (Scrooge McDuck, the ) of cartoon characters who hoard gold. U.S. President Donald Trump intends to follow a similar strategy, but in addition to harming bondholders, he believes that tariffs can be imposed on foreign capital and trade flows to make America great again. Bescent did do too much to persuade central bank reserve managers to buy more Treasuries. However, from the perspective of the dollar, there is a large, underbanked group in the (Global South) of the Global South, and all they crave most is to have a positive yielding dollar currency account. As you know, all fiat currencies are garbage compared to Bitcoin and gold. That being said, if you're in the fiat system, the best fiat currency is the US dollar. The domestic regulators that rule much of the world's population force their civilians to hold low-quality currencies plagued by high inflation and restrict their access to the dollar financial system. These civilians would buy Treasury bonds (T-bills) at whatever yield Becents offered, just to escape their bad government bond market. Is there a way to provide banking services for some people? I first traveled to Argentina in 2018 and will go regularly since. This is a chart where ARSUSD has been indexed to 100 since September 2018. The Argentine peso has lost 97% of its value against the US dollar in seven years. Currently, when I go skiing there, all my service staff are paid in USDT. Bescent found a new tool to solve his problem. It's called a stablecoin. Stablecoins pegged to the U.S. dollar are now being pushed by the U.S. Treasury. The Empire will support selected issuers as they siphon off retail deposits in Eurodollars and the Global South. To understand why, I'll quickly introduce the structure of "acceptable" stablecoins pegged to the US dollar. Then, I'll talk about the impact on the traditional financial (TradFi) banking system. Finally, this is also the degenerate ( degenerate, the currency circle term, referring to high-risk investors ) For the purpose of coming here, I will explain why the global adoption of US dollar stablecoins backed by "Peace Under America" will drive the long-term growth of DeFi adoption, especially Ethena, Ether.fi, and Hyperliquid. As you know, Maelstrom ( the author's institution ) not for free. We hold large, large, large positions...