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Two major economies are tightening their grip on cryptocurrencies as the United States pushes to assert its leadership in the stablecoin sector. Israel accelerates plans for its digital shekel as China continues to expand digital yuan.
These moves signal a broader global shift toward sovereign digital currencies that may challenge the reach and influence of US dollar-based stablecoins.
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Israel tightens rules, introduces digital shekel
Stablecoins It has become a mainstay in the digital asset market, easily transcending its initial role as a means of trading.
The sector now handles more than $2 trillion in monthly volume and has a market value exceeding $310 billion, almost all of it in dollars. This growth has pushed private companies to take a leadership role in operating key components of the global payment infrastructure.
As their influence expands, governments get involved. Many of them introduce new rules aimed at limiting the spread of tokens linked to the US dollar.
During a recent conference in Tel Aviv, the governor of the Bank of Israel, Amir Yaron, stated that the country was preparing to implement much stricter supervision of stablecoins, citing growing concerns about the concentration of the sector.
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With most of the activity controlled by Tether and Circle, he warned that any problem in their reserves or support could spill over into the wider financial system.
Yaron also noted that stablecoins are now too entangled in global money flows to be treated as a niche market, adding that the size of the sector already rivals an average international bank.
Along with these warnings, Israel also accelerates its initiative For the digital shekelIts central bank digital currency (CBDC).
The Bank of Israel recently published a detailed design document outlining the user path, technical structures and key points of the article. Officials say the project aims to strengthen the country’s payment infrastructure and reduce reliance on private digital assets.
While Israel builds its regulatory and technical framework, China is taking a more assertive course.
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Beijing rules out the influence of stablecoins
China has doubled Its complete ban on digital currenciesworking with various government agencies to target stablecoin activities and fill remaining gaps. Officials say digital assets lead to money laundering and capital flight, and insist these tokens have no legal status as currency.
Narrowing also occurs with The rapid growth of the digital yuan.
According to a report by Ledger Insights, the People’s Bank of China recently reported that e-CNY transaction volume It has nearly doubled in the past 14 months, reaching $2 trillion as of September.
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Pilots are now operational in major cities, public sector payment systems, and selected commercial routes. This trend pushes state-issued currency deeper into everyday financial activity.
Facing stablecoins and accelerating the digital yuan, China aims Reduces dependence on foreign exchange channelsespecially those linked to the US dollar. The strategy also helps maintain tight control over data, capital flows and payment infrastructure.
With a more balanced approach, but also guided by Israel’s sovereignty, China’s escalation highlights a clear global change.
Major economies are no longer willing to let US dollar stablecoins determine the future of payments. Many are now building or imposing their own digital systems and challenging the ambitions of the United States to dominate stablecoins.
