365Crypto
Anyone interested even slightly in politics knows that the US dollar has been dependent on oil for decades. Since the 70s, oil exporters priced and sold oil in USD, which forced all oil importers to keep USD reserves.
Most oil exporters had no choice but to sell in USD; that was the only way they would have security “guarantees” from the USA.
In 2000 Saddam Hussein switched to the euro. Iraq started selling oil in euros. In 2003 Saddam was toppled.
In 2009 Gaddafi started proposing and preparing to sell Libyan oil in gold dinar. In 2011 Gaddafi was toppled.
In 2019 Russia decided that the euro would be the default currency instead of the dollar, which had been the currency for 90% of Russian oil exports. In 2022 Russia was strategically outmaneuvered and misled into a major miscalculation, invading Ukraine and putting both Europe and Russia in economic trouble for years to come.
In 2025 Maduro started selling oil in crypto, and in late 2025 Maduro sold most of the Venezuelan oil to China in Chinese yuan. On January 3, 2026, Maduro was captured.
Forcing the world to use the dollar allows the US to run high deficits, borrow at low cost through Treasury bonds that are bought using foreign oil revenues, and let the money machine print with little consequence.
Essentially, this allows the US to continue to prosper and function without any need for real austerity measures.
The problem with the petro dollar approach is the rise of other strong countries and blocs that are simply refusing to use the dollar, and here I mention the EU, China, but also the BRICS+ alliance. The US has felt that it reached the end of the road with petro dollar enforcement because it cannot afford to go into war with every single oil exporter that does not abide by the petro dollar.
Some smart policymakers in the US noticed the strong rise of crypto, but most importantly the functioning of stablecoins.
Essentially, a USD stablecoin issuer would need to have USD reserves in some form. The favorite and safest way of parking these USD reserves is in highly liquid Treasury bonds, Treasury notes, or Treasury bills. For example, Tether, the biggest stablecoin issuer, is now among the top 20 largest holders of US Treasurys, which make up 83% of Tether’s reserves.
Essentially, stablecoins’ demand for Treasury bills and bonds can replace petro dollar Treasury bond demand. The US can stop worrying about who might sell oil in anything other than USD and still have the same facility to borrow cheaply and operate as if the dollar is the world reserve currency.
Currently the crypto market cap is above $2 trillion, while global oil and gas revenue is above $4 trillion. Once the crypto market starts properly integrating with the stock market and real estate market, and becomes the de facto payment solution for international trade, it will see its value multiplied by 100x.
Stablecoins are essential to fast buying and selling of crypto or non-crypto assets via the blockchain and new fintech platforms.
The game is simple: be the first to support the crypto industry, and especially the USD stablecoin companies. This will give local crypto companies a long-term major advantage against any other foreign currency stablecoin issuer and will make USD stablecoins the de facto long-term standard. These stablecoin issuers will replace oil when it comes to buying US Treasury bonds.
Meanwhile, the Europeans are clueless as usual. They are rolling out the euro CBDC, a tool to dethrone American payment companies like Visa, Mastercard, or American online payment platforms. And the funny part is that they will rely on payment platforms to manage the digital euro, hence essentially going forward one step and backward two steps. And of course, due to their inability to see beyond their nose, they are adopting a tough stance on crypto, treating it as an enemy and putting all the AML regulations and high taxation on the table to hinder any growth or development of the crypto market in the EU, instead of launching or supporting a euro stablecoin and letting the ecosystem grow and prosper.
China, on the other hand, is still living a few decades behind. Beijing is stockpiling gold and hoping the yuan would become the new reserve currency, ignoring the fact that gold never protected any currency from hyperinflation, and that reserve currency status was directly linked to the petro dollar toxic relation, not to the desire of various countries to have USD reserves.
The US, however, might not succeed with the switch, because the crypto market is open and others can also realize the game plan and decide to back their own local stablecoins. Furthermore, the US first-mover advantage needs strong and decisive support from the US government, something the Democrats might sabotage for the simple reason that no one explained to them the game plan.
Article submitted by: 5A
