Sam Lyman, head of research at the Bitcoin Policy Institute, says US dollar‑pegged stablecoins and Bitcoin (BTC) have a mutually reinforcing, or “symbiotic,” relationship as adoption grows. The dominant trading pair for Bitcoin remains BTC/USD—often settled through Tether’s USDT—which in Lyman’s view strengthens the dollar’s role in crypto markets rather than undermining it.
Lyman argues that frequent dollar‑denominated trading links Bitcoin and the broader dollar system: BTC liquidity provided via dollars and stablecoins amplifies demand for the currency. He likens the dynamic to the petrodollar era, when pricing oil in dollars increased global reliance on the US currency. From a policy perspective, Lyman urged US lawmakers to continue developing stablecoin rules along the GENIUS framework, emphasizing that regulation should preserve core principles while reinforcing US dollar hegemony and geopolitical competitiveness.
On China, Lyman noted repeated bans on Bitcoin and stablecoins stem from the threat these assets pose to capital controls—mechanisms Beijing uses to keep money inside its economy. In 2025 China reaffirmed stablecoin restrictions while advancing the digital yuan, a yield‑bearing central bank digital currency (CBDC) designed to manage capital flows and expand its footprint in foreign‑exchange activity. CBDCs are fully programmable and centrally controlled by their issuers, Lyman highlighted.
Despite official prohibitions, permissionless crypto activity linked to China persists. Even after prior mining crackdowns, Chinese mining pools still account for more than 36% of global mining‑pool hashrate, according to Hashrate Index.
Cointelegraph states it is committed to independent, transparent journalism; readers are encouraged to verify information independently in line with the outlet’s editorial policy.