In an era where financial power dynamics are shifting, China is making significant strides to internationalize the Chinese Yuan, aiming to challenge the long-standing supremacy of the U.S. dollar. With an aggressive strategy that includes conducting trials for using the digital Yuan in cross-border transactions, particularly with Saudi Arabia, China is injecting a new layer into the multipolar financial landscape that is emerging globally.
The Rise Of Cross-Border Yuan Transactions
According to the People’s Bank of China, the momentum for using the Yuan in cross-border transactions has surged dramatically this year. From January to August, total cross-border Yuan payments skyrocketed by 21.1% year-on-year, reaching an astonishing 41.6 trillion Yuan. This robust growth has taken many by surprise and reflects a growing acceptance of the Chinese currency in global trade.
Further supporting this trend, a report from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) highlighted that the Yuan’s share of global transactions rose to 4.69% in August. While the U.S. dollar continues to dominate global invoicing, narratives of de-dollarization are gaining traction, pushing various economies to explore alternatives like the Yuan for fostering growth and development.
A Strategic Political Move
As outlined by the South China Morning Post (SCMP), the internationalization of the Yuan is not merely an economic strategy but a calculated move by China to bolster its political influence on the world stage. The ongoing trials of Yuan-centric Central Bank Digital Currency (CBDC) transactions with Saudi Arabia signify China’s ambitions to expand its financial clout. Additionally, similar trials are planned for regions like Hong Kong, Thailand, and the UAE, illustrating a strategic approach to embed the Yuan in key markets.
China’s efforts align with its active participation in the BRICS alliance, a coalition of nations advocating for de-dollarization. This coalition has been instrumental in promoting the use of local currencies in trade, further cementing China’s position in the international financial system. Notably, China has also facilitated significant transactions with Russia in Yuan, enhancing the currency’s global profile.
The Petroyuan Potential
The recent buzz surrounding the digital Yuan trials has led to speculation about the emergence of a Petroyuan narrative, which could fundamentally reshape global oil trading. If this concept materializes, it could deliver a significant blow to the U.S. dollar’s integrity as the dominant currency for global oil transactions. Such a shift would not only impact the dollar’s status but could also encourage other countries to adopt the Yuan for their trade needs, thereby expanding its usage.
As China pursues its ambitious plan to internationalize the Yuan, the implications for the global financial system are profound. With the steady rise of cross-border Yuan transactions and the strategic trials with major economies, China is laying the groundwork for a more multipolar financial order. The challenge to the U.S. dollar’s longstanding dominance is not just a fleeting trend; it represents a fundamental shift in the way countries engage in trade and finance. As the world watches closely, the outcome of China’s efforts could redefine the future of global currency dynamics.
American financial services company Robinhood has announced that it is set to acquire WonderFi, a leading Canadian fintech and crypto platform, for $178.9 million (250 million CAD). The firm will buy WonderFi’s shares for $0.26 (0.36 CAD) each.
Robinhood announced the deal on May 13. This marks a significant step in its international expansion into the Canadian cryptocurrency market.
Robinhood to Enter Canadian Market via WonderFi Acquisition
According to the official announcement, Robinhood will finance the purchase with cash. The acquisition is expected to close in the second half of 2025, pending regulatory approvals, court approval, and WonderFi shareholder consent.
Notably, WonderFi currently manages over 2.1 billion CAD in custodied assets. It operates two Canadian-regulated digital asset exchanges, Bitbuy and Coinsquare. Furthermore, in 2024, the platform recorded a trading volume of 3.57 billion CAD and revenue of 62.1 million CAD.
“WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada,” Johann Kerbrat, SVP and GM of Robinhood Crypto, stated.
With this latest move, Robinhood aims to expand its offerings in Canada, a growing crypto market. The acquisition will leverage WonderFi’s technologies and products, including crypto trading, staking, and custody services.
Following the agreement, WonderFi will operate under Robinhood Crypto while continuing to deliver its existing products to Canadian customers. The WonderFi leadership team, including President and CEO Dean Skurka, will remain in place. They will join forces with Robinhood’s existing Canadian workforce of over 140 employees, based primarily in Toronto.
“WonderFi and Robinhood are united in our visions of making crypto accessible and bringing more people into the crypto space,” Skurka said.
The news positively impacted Robinhood’s stock, HOOD. According to Yahoo Finance data, the stock prices rose 8.9% to $62.5 at market close. Additionally, HOOD appreciated an additional 0.3% to $62.7 in after-hours trading.
This latest decision aligns with Robinhood’s broader strategy to expand its global footprint in the cryptocurrency sector. In 2024, the firm entered an agreement to acquire Bitstamp.
These deals are supported by a more favorable regulatory environment under President Trump’s second term. In fact, in late February, the SEC dropped its investigation into Robinhood, with similar steps taken for Coinbase, OpenSea, and others.
Meanwhile, Robinhood isn’t alone in its expansion plans. On May 8, Coinbase announced its $2.9 billion purchase of Deribit. Preceding that, Ripple acquired Hidden Road for $1.25 billion. In addition, Kraken bought NinjaTrader in a $1.5 billion deal. This reflects a broader trend of major crypto players acquiring financial platforms.
The International Monetary Fund (IMF) had previously confirmed that El Salvador is upholding its commitment to halt Bitcoin accumulation within its public sector.
Yet, on-chain data reveals a different reality that the Central American nation is continuing to grow its Bitcoin reserves quietly.
Bitcoin Accumulation Continues in El Salvador Despite IMF’s Policy Claims
In an April 26 press briefing, Rodrigo Valdes, Director of the IMF’s Western Hemisphere Department, stated that El Salvador is complying with the agreed non-BTC accumulation policy.
“In terms of El Salvador, let me say that I can confirm that they continue to comply with their commitment of non-accumulation of bitcoin by the overall fiscal sector, which is the performance criteria that we have,” Valdes stated.
“The program of El Salvador is not about bitcoin. It’s much more, much deeper in structural reforms, in terms of governance, in terms of transparency. There is a lot of progress there. And also, on fiscal. And authorities have been making a lot of progress implementing the reform,” he continued.
Beyond BTC, Valdes stressed that fiscal reforms are another priority for El Salvador. These measures could unlock access to as much as $3.5 billion in financial assistance, potentially boosting private sector investments and supporting sustainable economic growth.
El Salvador’s efforts are tied to its December 2024 agreement with the IMF for a $1.4 billion loan. As part of the deal, the financial regulator required the government to revise its Bitcoin policies.
These changes included removing mandatory BTC acceptance for merchants, ending Bitcoin-based tax payments, and scaling back the Chivo wallet project.
Stacy Herbert, Director of the National Bitcoin Office, emphasized that El Salvador will continue to expand its strategic Bitcoin reserve.
She explained that this move helps the country maintain its first-mover advantage in the crypto space.
“El Salvador continues front-running the rest of the world by adding to its Strategic Bitcoin Reserve. First mover advantage intensifies,” Herbert said.
Meanwhile, the country’s embrace of emerging technologies continues to attract international attention. Stablecoin issuer Tether recently relocated its headquarters to El Salvador, praising the nation’s favorable regulatory environment.
In addition, El Salvador recently signed a letter of intent with AI leader NVIDIA to develop sovereign artificial intelligence infrastructure. This move will strengthen its position as a rising innovation hub in Latin America.
After numerous Congressional debates and revisions, the GENIUS Act is now on the verge of becoming law. The bill, which aims to regulate the stablecoin industry across the United States, is widely expected to be signed.
According to representatives from Digital Chamber, a D.C.-based advocacy group for the blockchain industry, the bill approval will likely come before the end of June. Such a move would increase institutional adoption and strengthen the US dollar’s dominance globally.
When Will the GENIUS Act Pass?
Poised for passage, the GENIUS Act is a landmark bill that would federally regulate the US stablecoin industry.
Despite recent disagreements between Republican and Democratic Senators, the bill passed a key procedural vote. Kristopher Klaich, Policy Director at The Digital Chamber, strongly believes in its impending approval.
“I feel pretty strongly that there won’t be more hiccups… I think the industry has been such a strong player in politics for the last couple of years and supporting campaigns… there’s a high cost for members that may be the stick in the mud,” he told BeInCrypto.
According to Taylor Barr, the advocacy group’s Government Affairs and PAC Manager, 53 amendments have been made.
“Majority leader Thune is committed to having what he’s calling a fully open amendment process, which means every single amendment has the full right to go through a debate vote and to have full closure on each amendment. So at the end of the day, that could be a three-week-long process,” Barr told BeInCrypto.
However, Barr clarified that a fully open process with 53 individual debates is unlikely. He expects these amendments to be divided into three or four groups, resulting in a more efficient and abbreviated open amendment process, given that many are duplicative.
If Barr’s estimations are correct, the bill will pass before the end of this month. When it does, the significance will be substantial for the greater crypto industry.
Understanding Stablecoin Impact
Stablecoins are arguably the most globally adopted digital asset. Unlike traditional cryptocurrencies like Bitcoin or altcoins, they provide worldwide access to a stable medium of exchange.
According to a January report by crypto exchange CEX.io, the total stablecoin transaction volume reached 27.6 trillion in 2024, exceeding Visa’s total payment volume and Mastercard’s by 7.7%.
Tether and Circle dominate the market at $151 billion and $59 billion, respectively. Together, they have an 89% market share, according to rwa.xyz.
Tether and Circle dominate stablecoin market share. Source: rwa.xyz.
Their heavyweight presence in global economies makes a bill like the GENIUS Act all the more significant. This is especially true in the context of a debilitated US dollar.
The Dollar’s Waning Influence
The US dollar started the year exceptionally weakly. Two days ago, the US Dollar Index (DXY)—a key measure heavily influenced by the euro—fell nearly 9% to just under 99. The results marked its weakest calendar year opening since at least the mid-1980s.
This situation and broader de-dollarization efforts by major US debt holders like China and Japan intensify concerns about the dollar’s future.
US Dollar Index Continues to Decline. Source: Yahoo Finance
Data from Ark Invest illustrates this shift. In 2011, these three nations held 23% of the $10.1 trillion in outstanding US Treasury debt.
By November 2024, despite the total outstanding US Treasury debt rising to $36 trillion, their combined holdings had dropped significantly to approximately 6%.
This substantial decrease in holdings by key foreign creditors highlights growing worries about the dollar’s long-term stability and the United States’ ability to refinance its massive debt.
“Dollars are the world reserve currency. Demand for dollars has waned at the sovereign level. Over recent years, the largest purchasers of treasuries are cutting their holdings of treasuries. That is not a good situation for the United States as they try to refinance,” Klaich said.
Klaich added that legislation like the GENIUS Act is crucial:
“In my mind, there’s very little more important than the stablecoin bill being passed from an macroeconomic perspective… If demand for dollars diminishes at the sovereign level, structurally speaking, if that is or can be replaced by demand at a retail individual level, that is a huge boon to the US government.”
The data behind Klaich’s statements seems to back his analysis.
What Role Will Stablecoins Play in Future US Debt Demand?
The stablecoin market is poised for significant growth. According to an April report from Citigroup, the total stablecoin supply could reach $1.6 trillion by 2030. This growth could create a demand for US debt comparable to the historical levels supported by sovereign nations.
Stablecoin issuers could be one of the largest holders of US treasuries by 2030. Source: Citigroup.
The GENIUS Act could facilitate this transition.
“Hopefully, when it passes, demand for stablecoins will explode because there are many companies and banks that are planning to introduce stablecoins that will provide the rails for them to operate at a consumer and business level. So the efficiencies companies and individuals realize will help push that,” Klaich explained.
“It allows anybody in the world to access US dollars. What that affords the US from an economic warfare standpoint is significant,” Klaich added.
With persistent inflation risks, the Federal Reserve is unlikely to buy back significant amounts of US treasuries. Therefore, encouraging stablecoin use allows this market to effectively replace currently ineffective financial mechanisms.
Amendments to the Bill
If the GENIUS Act is implemented correctly, the stablecoin industry could become a valuable financial tool for the US government to ensure long-term support for the US dollar.
The bill underwent a difficult revision process. According to Barr, the process was tedious and politically challenging.
“If you look at all of the progress we’ve made, we’ve worked on this for three Congresses now. We’ve worked on this [through] multiple different leaderships– minority, majority split. So we’re so close. We’ve done all this progress so we can see the finish line. We’re going to get there,” he said.
However, multiple revisions were a prerequisite for its passage to ensure the bill responsibly addressed consumer protection, national security, and market integrity issues.
Klaich noted that these critical concerns were addressed fairly in the legislative process. He emphasized that recent versions of the bill effectively integrated these revisions.
“None of those issues are existential, and they’ve been negotiated into the latest version of the bill that’s being considered right now. I think the changes that have been made are reasonable and acceptable,” he said.
The future will reveal if the bill passes and achieves its desired effect in helping the US overcome its complicated economic reality.
