As 2025 draws to a close, looking back reveals a year of historic shifts for the global virtual asset industry; the conversation has moved beyond the survival of Bitcoin or stablecoins to focus on the depth of their integration into global finance.

With the passage of the ‘Genius Act‘ in the United States, the public listing of stablecoin issuer Circle, and significant new developments in the global regulation of stablecoins, a new generation of finance is taking shape.

At the same time, central banks around the world are actively debating how stablecoins should be governed and, in some cases, issued—reigniting concerns over monetary sovereignty. The year ahead will be marked by tension and volatility, but history suggests that periods of disruption often give rise to new leaders.

2025 in Review: Blockchain and Crypto Matter

In the evolution of financial history, 2025 is poised to hold a special place. Wayne Huang, Co-founder and CEO of XREX Group, described the year 2025 with the phrase “It Matters” during the Web3 Go West podcast.

In previous years, cryptocurrency was often viewed as a niche speculative tool and frequently declared “dead” by mainstream media; however, in 2025, its influence reached a scale that can no longer be ignored. Wayne highlighted two key data points:

• Global Money Flows: A July 2025 McKinsey report titled The stable door opens: How tokenized cash enables next-gen payments noted that stablecoin circulation doubled over the past 18 months. Daily transaction volume reached approximately $30 billion, accounting for “less than 1 percent” of global money flows. While this percentage remains low, it represents a shift that cannot be overlooked.
• Global Asset Share: According to estimates from OMFIF and CoinMarketCap, the total market capitalization of global virtual currencies now accounts for approximately 1% of global financial assets.

This “1%” is not merely a statistic; it is proof of impact on the real economy and a critical variable for national economic stability, compelling governments and regulators to prioritize the establishment of regulatory rules. Consequently, the market atmosphere has shifted from skepticism to practical exploration.

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The 2026 Core Battlefield: Conflict Between USD Stablecoins and National Sovereignty

In 2026, stablecoins will escalate further, becoming a “national sovereignty” issue.

1. The Two Pillars of Sovereignty: Monetary Sovereignty and Jurisdictional Authority

Wayne noted that the core of national sovereignty includes “Monetary sovereignty” and “enforcement rights”. “Monetary sovereignty” refers to a nation’s authority to issue currency and regulate the economy through monetary policy, while “legislative and judicial rights” ensure the enactment and execution of laws.

Data from the Bank for International Settlements (BIS) and the U.S. Treasury in 2025 indicates that approximately 99% of stablecoins currently on the market are USD-pegged, maintaining the U.S. dollar’s absolute dominance in the digital asset space.

For the United States, USD stablecoins can be seen as a digital extension of its economic influence. For emerging market governments where these stablecoins are widely used, the adoption of a foreign digital currency may reduce the role of the local currency in economic policy—effectively limiting what is sometimes called “monetary sovereignty.” This phenomenon, where a domestic economy relies heavily on foreign currency, is often referred to as ‘currency colonization.’

2. The War for Financial Sovereignty

Over the past decade, we have seen internet and social media platforms challenge traditional notions of information sovereignty, with algorithms influencing election outcomes in multiple countries. Wayne highlighted that in 2026, this phenomenon of “digital colonization” is expected to extend from the information sector into finance.

When citizens in a country begin using USD stablecoins en masse, governments face a challenge even more complex than information outflow: the potential erosion of the domestic financial system. This development is likely to require countries to make important policy decisions in 2026.

In response to the growing use of USD stablecoins, many central banks in emerging markets are exploring the issuance of their own Central Bank Digital Currencies (CBDCs). However, Wayne cautions that the key consideration is not merely digitalization or putting currency “on-chain,” but ensuring the credibility and intrinsic value of the currency itself.

Many central banks assume that citizens primarily want digital or blockchain-based assets, prompting a rapid push to issue digital versions of their fiat currency. Yet, as Wayne notes, the underlying factor is trust: people value the U.S. dollar for its stability. If a country’s fiat currency experiences high inflation or persistent depreciation, simply digitizing it on a blockchain will not ensure adoption.

Wayne believes the digital assets landscape in 2026 will follow a trend where “the strong get stronger, and the weak get weaker,” inevitably leading to significant conflict and turbulence.

History demonstrates that many influential artworks and innovations have emerged during periods of upheaval, and transformative technologies, such as the internet, often arose out of necessity in times of crisis. Turbulence and disruption are not inherently negative; as Wayne noted, such periods can create conditions for significant progress.

Wayne argues that it is precisely in “transitional times”—when established systems are being challenged, but new frameworks have yet to take hold—that the younger generation has the opportunity to redefine value. The global financial system is currently experiencing such a moment.

In 2025, we witnessed digital assets successfully force their way onto the main stage, proving their historical status as something that “matters. 

Looking toward 2026, while the defense of “Monetary sovereignty” will set off a new wave of financial upheaval and potentially spark national-level conflicts, history tells us that technological leaps are often accompanied by growing pains. We stand at a watershed moment for the transition between the old and new financial systems.

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Key Takeaways 

• The 1% Threshold: In 2025, crypto assets and stablecoin settlement volumes both approached a 1% share of the global market. This signifies the industry is too large for governments to ignore, necessitating regulatory intervention and attention from enterprises and individuals.
• Two Pillars of Sovereignty: National sovereignty is built on “Monetary sovereignty” and “jurisdiction” (legal rights). The global expansion of USD stablecoins directly challenges these two core powers in other nations, creating pressure toward “digital and financial colonization,” particularly for emerging markets.
• The Strategic Misjudgment of CBDCs: Many countries mistakenly believe issuing CBDCs can withstand USD stablecoins, but the public seeks the “strong dollar,” not just “blockchain technology”. If the fiat currency’s fundamentals are weak, digitalization may accelerate deposit outflows from commercial banks, damaging the domestic financial system.
• Opportunity in Turbulence: Unlike the comfortable era where the Baby Boomer generation controlled resources, the current geopolitical and financial turbulence offers the younger generation a chance to reshuffle the deck, solve major problems, and create immense value.

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