TechFlow, on September 25, according to Sina Finance, Morgan Stanley's Chief Economist for China, Ziqiang Xing, pointed out that the U.S. "Genius Act" essentially reflects America's desire to maintain dollar dominance during the digitalization phase of payment infrastructure. In the short term, the stablecoin bill may further strengthen the dollar's international status, but this could instead expose the single-point risk of global payment systems being overly reliant on the dollar. Xing analyzed that the Federal Reserve has already started its rate-cutting cycle, hence he is bearish on the dollar in the long run. When U.S. real interest rates decline, it may weaken global capital demand for the dollar and U.S. Treasuries, leading to dollar depreciation and increased volatility in the U.S. bond market.
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