Dmitry Zelentsov

𝗪𝗵𝗼 𝗿𝗲𝗮𝗹𝗹𝘆 𝗱𝗿𝗶𝘃𝗲𝘀 𝗰𝗿𝘆𝗽𝘁𝗼 𝘂𝘀𝗲? 𝗬𝗼𝘂𝗻𝗴𝗲𝗿, 𝗿𝗶𝗰𝗵𝗲𝗿 𝗺𝗲𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗦 𝗮𝗿𝗲 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗰𝗵𝗮𝗿𝗴𝗲. Deutsche Bank's latest dbDataInsights report dives into crypto adoption in 2025, surveying 3,400 consumers across the US, UK, and EU. The findings? Adoption is growing-but trust and knowledge gaps remain. Here’s the breakdown: 🇺🇸 The US: Younger, wealthier men are at the forefront. They’re not just investing-they’re using crypto in their daily lives. 🇬🇧 The UK: The biggest growth in early 2025 came from 18–34-year-olds. However, nearly half still see crypto as too risky. 🇪🇺 The EU: Crypto adoption is slower, with older age groups and women lagging behind. Why? A lack of understanding remains a key barrier. Across all regions, the top obstacles are clear: - Perceived risk: Crypto feels too volatile or unregulated for many. - Knowledge gaps: Over 35% still say they don’t understand how it works. But here’s the silver lining: education and trust can change the game. - Tailored financial literacy programs for women and non-users could bridge the gap. - Regulation should focus on trust-building, not just compliance. - Safer, more intuitive crypto experiences from fintechs and banks are a must. Crypto isn’t just a fringe trend anymore-it’s evolving into a critical part of the financial ecosystem. But mass adoption? It won’t happen until people feel informed, secure, and empowered. What do you think is the biggest barrier to trusting crypto today? Is it the volatility-or the communication? For more insights, the full Deutsche Bank report is worth a read: Cryptocurrencies: Understanding Retail Adoption in 6 Slides (July 8, 2025). Authors & Contributors: Marion Laboure, Ph.D., Senior Strategist, Deutsche Bank Camilla Siazon, Deutsche Bank dbDataInsights Kyriaki Chorafa Tom Michel Schult Kilian Thalhammer Xavier Gastaldi Sarkis Mazmanian Stefan Teis Yibin Hu 胡意彬 Christian Georg Everts, LL.M. Rahul Mahipal Nicholas Bone Johannes Rentsch Nicolas Nonnenmacher Thomas Richter Dirk Finkemeyer Girish Pandit Michael Licitra Maël Pavon Ekansh Nayal, CFA Naaz Rahemtulla Boon-Hiong Chan Sven Henkel

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The #Genius Act: Financial Innovation or Strategic Power Play? With the recent signing of the Genius Act, the U.S. has entered a new phase in the evolution of digital finance. For the first time, USD #stablecoins are subject to a clear federal framework, a long-awaited milestone for crypto legitimacy. But while the headlines speak of “clarity” and “innovation,” a much deeper and more strategic shift is underway. Stablecoins, once seen as a niche crypto tool, have become essential #infrastructure for global #payments, #DeFi applications, and financial access in developing markets. They offer digital dollar liquidity where traditional #banking fails, enabling fast, cheap, and stable cross-border transactions. But the Genius Act changes the game: ✅ Stablecoins must now be fully backed by cash or short-term U.S. Treasuries ⛔ Interest payments to end users are explicitly forbidden The result? Yield-bearing stablecoins, a key DeFi innovation, lose their main attraction. Instead of competing with banks, stablecoins now become extensions of U.S. debt management. Welcome to what observers are calling the “Mar-a-Lago Accord”: an implicit pact that channels global demand for digital dollars into zero-yield capital flows into the U.S. Treasury. In this model, international users fund U.S. debt, not through bond markets paying interest abroad, but through stablecoin reserves held domestically. A brilliant twist: the U.S. still pays interest, but it stays within U.S. institutions rather than flowing out. This is not just clever monetary design, it’s monetary geopolitics. If USD stablecoins continue to gain traction in the Global South, they could cement the dollar’s dominance for decades to come, without the traditional costs of global reserve currency status. What’s particularly striking: responsibility for stablecoin oversight has shifted away from the Federal Reserve toward the U.S. Treasury, the very institution that stands to benefit most from increased demand for short-term government debt. This creates a clear conflict of interest: the regulator is now also the main financial beneficiary. Risks: Systemic fragility, if confidence in one major stablecoin fails, the shock could hit both crypto and traditional bond markets alike. The big picture: The Genius Act doesn’t liberate digital finance, it subtly turns stablecoins into a geopolitical tool and a domestic refinancing engine. Whether it’s financial genius or monetary overreach remains to be seen. But one thing is clear: America is once again rewriting the rules of global finance. Europe should take note. The full article (in German) can be found in my newest column at Payment & Banking - PBA Experts GmbH. Link in the comments.

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Wow! Citi GPS's latest report on post-trade shows an amazing almost doubling of the use of stablecoins in trading and settlement over the next 5 years, with % of respondents expecting stablecoin as settlement assets rising from 14% to 24%, far outpacing CBDC and tokenised deposits, and perhaps an implication of the Genius Act passing.. If this comes to pass, it represents a serious issue for central banks in terms of systemic risks and yet another argument for accelerating effective wCBDC efforts. #stablecoins #cbdc

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