Bitcoin and US dollar-pegged stablecoins share a “symbiotic” relationship that strengthens both systems, according to Bitcoin Policy Institute’s head of research Sam Lyman.
Lyman said Bitcoin is predominantly traded against the US dollar and dollar-backed stablecoins like USDT, reinforcing global demand for the currency rather than undermining it.
“There is a symbiotic relationship between BTC and the dollar system because BTC is most frequently traded in dollars,”
Said Bitcoin Policy Institute head of research, Sam Lyman.
He compared the relationship to the petrodollar system, where global oil trade priced in dollars increases demand for the US currency and supports its dominance in international markets.
Lyman urged US lawmakers to continue developing stablecoin regulations under the GENIUS framework to strengthen dollar hegemony and maintain geopolitical competitiveness.
He also noted that China continues to restrict Bitcoin and stablecoins due to their threat to capital controls, instead promoting its state-controlled digital yuan CBDC.
Despite repeated bans, China still accounts for over 36% of global Bitcoin mining hashrate through mining pools, highlighting the difficulty of limiting decentralised crypto activity.
At the time of reporting, Bitcoin price was $69,145.81.