Sat. AM-PM Seeds of Wisdom Crypto Update(s) 7-12-25

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Seeds of Wisdom

Fed Chair Jerome Powell Considers Resigning: What’s Next for Crypto?

Federal Reserve Chairman Jerome Powell is reportedly considering stepping down before the end of his term — a move that could significantly impact U.S. interest rate policy and trigger a new wave of momentum in the crypto markets.

Pulte Responds: “The Right Decision for America”

William J. Pulte, Chairman of the Board of Fannie Mae and Freddie Mac, responded publicly to the reports, expressing strong support for Powell’s potential resignation. Posting on his official X account, Pulte stated:

“I’m encouraged by reports that Jerome Powell is considering resigning. I think this will be the right decision for America, and the economy will boom.”

While Powell has not officially confirmed any plans to resign, multiple sources have pointed to growing friction between the Fed and the T------------------n as a likely catalyst.

Policy Divide: Powell vs. Trump

The tension between Fed Chair Powell and President Donald Trump has escalated in recent months. Trump has repeatedly called for aggressive interest rate cuts, arguing that a looser monetary policy is necessary to match the current strength of the U.S. economy.

In a recent TruthSocial post, President Trump stated:

“Tech Stocks, Industrial Stocks, Nasdaq hit all-time highs! Crypto is through the roof, Nvidia is up 47% since Trump tariffs. The USA is taking in hundreds of billions of dollars in tariffs… The Fed should rapidly lower rates to reflect this strength.”

However, Chair Powell has resisted such demands, warning that recent tariffs could actually increase inflationary pressure and that monetary policy should remain cautious, especially in the face of a weakening U.S. dollar.

Market Implications: Rate Cuts & Crypto Surge

Should Powell resign, President Trump would likely appoint a successor aligned with his pro-growth, low-rate agenda. Analysts believe this would increase the likelihood of multiple rate cuts before the end of 2025, providing an additional tailwind for risk-on assets.

Crypto markets have already entered a bullish phase, bolstered by expanding global liquidity and easing monetary conditions. Additional rate cuts could accelerate this momentum significantly.

The potential leadership change at the Fed represents more than a political reshuffle — it could become a pivotal event for both traditional financial markets and the digital asset ecosystem.

@ Newshounds News™

Source: Coinpedia   

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BIS Research Finds Tokenized Government Bonds Have Tighter Spreads

The Bank for International Settlements (BIS) has released new research indicating that tokenized government bonds—while still a small slice of the overall bond market—are demonstrating significantly tighter bid-ask spreads and potential advantages in liquidity, issuance efficiency, and accessibility.

Key Findings From the BIS Bulletin

The BIS analyzed 15 tokenized bonds issued by sovereigns, supranational institutions, and government agencies, totaling $1.9 billion—a fraction of the estimated $80 trillion global government bond market.

Improved Liquidity:

• Mean bid-ask spread on tokenized bonds: 19 basis points
• Mean bid-ask spread on traditional bonds: 30 basis points

The tighter spreads suggest superior liquidity and possibly more efficient price discovery for tokenized instruments.

Why Are Tokenized Bonds More Liquid?

The research points to several contributing factors:

• Integration with Central Securities Depositories (CSDs): Tokenized bonds issued via integrated platforms are more easily accessible to institutional investors.
• Investor experimentation: Anecdotal evidence suggests that investors are showing active interest in these digital instruments.
• Lower minimum investment thresholds:
  • Tokenized bonds average: $110,000
  • Conventional bonds average: $185,000

Lower entry costs broaden the investor pool and support tighter spreads.

Yields and Premium Pricing

While some tokenized bonds have traded at premium prices—implying lower yields—the BIS cautions that the evidence remains idiosyncratic, with no definitive trend yet established.

“The jury is still out” on whether tokenized bonds offer consistent yield advantages.

Advantages of Digital Bond Issuance

Tokenized or “digital-native” government bonds present a range of potential benefits:

• Faster settlement and reduced counterparty risk through Delivery vs Payment (DvP) models
• Smart contract automation to reduce servicing and back-office costs
• Lower issuance thresholds, encouraging broader market participation
• Potential collateral use, which could open significant liquidity channels (though this remains restricted in most jurisdictions)

Challenges and Outlook

Despite the upside, the BIS highlights critical hurdles:

• Regulatory uncertainty, especially regarding collateral eligibility
• Lack of platform scalability and the need for robust infrastructure

These challenges must be resolved for digital bonds to realize their full potential.

Cost Savings Potential

German tokenization platform Cashlink also weighed in, suggesting digital bonds—especially international and long-term issuances—could reduce costs by up to 1.2% of issuance value over an eight-year bond’s lifetime, primarily due to savings in asset servicing.

Conclusion

The BIS bulletin reinforces the growing appeal of tokenized bonds for both issuers and investors, pointing to better liquidity, lower entry barriers, and operational efficiencies. While still early-stage, the findings support continued interest in digital asset infrastructure—particularly as regulatory frameworks evolve and adoption scales.

@ Newshounds News™

Source: Ledger Insights   

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Shanghai Officials Signal Openness to Stablecoins Despite China’s Crypto Ban

In a surprising shift, Chinese state officials in Shanghai are reportedly showing openness toward stablecoin development, signaling a potential divergence from the country’s broader ban on cryptocurrencies.

Strategic Shift in Shanghai

According to Reuters, the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) convened a high-level meeting to discuss strategic responses to digital currencies and stablecoins. Following the meeting, SASAC Director He Qing urged stronger engagement with emerging technologies and deeper research into digital currency frameworks.

“We must demonstrate greater sensitivity to emerging technologies,” He Qing posted on the SASAC’s official channel.

This discussion follows growing domestic pressure from academics and private industry to explore a yuan-backed stablecoin that could compete globally.

China’s Central Bank Joins the Conversation

The People’s Bank of China (PBOC) is also starting to engage in the global stablecoin conversation. In June, PBOC Governor Pan Gongsheng acknowledged that stablecoins represent a transformative shift in global payments infrastructure, especially given the influence of U.S. dollar-backed assets such as Circle’s USDC.

In response to this shift, China’s Securities Times, a state-run outlet, published an editorial on June 23, stating that “the development of stablecoins should be sooner rather than later.”

Hong Kong: A Potential Testing Ground

Due to tight capital controls in mainland China, direct implementation of a yuan-backed stablecoin appears unlikely—for now. However, PBOC adviser Huang Yiping has floated the idea of using Hong Kong’s offshore RMB market to test the concept.

“Hong Kong has an offshore market for the renminbi. If it continues to develop, we could see a stablecoin pegged to the offshore RMB in Hong Kong,” Huang stated.

This would allow China to compete in the international stablecoin arena while avoiding the political and regulatory risks of allowing such assets within its mainland borders.

Conclusion

While China continues to enforce one of the world’s strictest bans on crypto trading and mining, signals from Shanghai authorities, the PBOC, and state media suggest a strategic reevaluation is underway. A yuan-backed stablecoin, launched via Hong Kong, could emerge as a controlled yet competitive response to Western-led digital currencies—particularly those advancing under U.S. financial policy.

@ Newshounds News™

Source: Cointelegraph

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Source: Dinar Recaps

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Areas Where BRICS Challenges the USA — And Where It Falls Short

As the global economic balance continues to shift, BRICS—once seen as a symbolic bloc—has grown into a formidable coalition with ambitions to challenge the U.S.-led financial order. With expanded membership and an aggressive de-dollarization push, BRICS is reshaping global dialogue on trade, energy, and economic sovereignty. But does it have the cohesion and tools to match its ambitions?

Areas Where BRICS Challenges the U.S. Dollar’s Dominance

1. De-Dollarization: A Bold Economic Agenda

At the forefront of BRICS’ economic strategy is its de-dollarization effort. Member nations are actively working to reduce reliance on U.S.-based financial systems by conducting bilateral trade in local currencies. This shift reflects a strategic priority: to strengthen domestic economies while reducing exposure to Washington’s fiscal leverage.

Local currencies first. The U.S. dollar, later.

This trend, if sustained, poses a direct threat to the dollar’s global reserve status, undermining its dominance in international settlements.

2. Strategic Control Over Global Resources

BRICS countries command a massive share of global natural resources:

• Russia, Iran, and the UAE: Oil and natural gas leaders
• Brazil: A global agricultural and food export powerhouse
• South Africa: Rich in gold, platinum, and rare earth minerals
• China: Global leader in manufacturing and rare earth supplies

If these nations settle trade in their own currencies, the U.S. dollar’s global usage could decline dramatically.

Together, this bloc represents a significant force in energy, agriculture, and mining, challenging U.S. supply chain influence.

Where BRICS Still Falls Short

1. No Real Alternative to the U.S. Dollar

Despite talk of a unified BRICS currency, no concrete monetary alternative exists. Member nations have failed to agree on a single tender, with each preferring to elevate its own national currency. As a result, they continue to rely on the U.S. dollar for international trade, especially in dealings with non-member nations.

Without a unified currency or financial architecture, BRICS remains tethered to the very system it seeks to disrupt.

2. Internal Political and Strategic Divisions

BRICS unity is often more optical than operational:

• India and China: Ongoing border and trade tensions
• Russia: Under sweeping Western sanctions and economic isolation
• Egypt & Ethiopia: Limited global economic influence
• South Africa & Brazil: Non-confrontational toward the West
• UAE: Maintains deep financial ties with the U.S. and Europe

These geopolitical and economic fractures limit BRICS’ ability to act as a cohesive counterweight to the West, particularly in areas requiring unified policy or shared infrastructure.

Conclusion

While BRICS continues to challenge key aspects of U.S. economic dominance, the bloc’s internal divisions and lack of monetary alternatives restrict its global transformation potential—for now. However, its resource control and political momentum suggest it remains a powerful force to watch in the evolving multipolar world order.

@ Newshounds News™

Source: Watcher.Guru

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Source: Dinar Recaps

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