Suppose there is a scenario: a large economic alliance is about to launch a joint currency that challenges the existing monetary system, claiming to be 100% backed by gold reserves. It sounds great, but the problem is—where is the gold stored? In Moscow, Shanghai, or somewhere else? Member countries suspect each other, worried that custodians might secretly divert or freeze assets during special periods. This becomes a deadlock.

In contrast, the decentralized stablecoin ecosystem has opened up possibilities in this regard. Why? Because it introduces a clever trick: code acts as a third-party verifier.

**Transparent Digital Reserves**

Stablecoins like USDD are not backed by gold bars hidden underground that no one can see, but by BTC on the blockchain. Anyone can open a blockchain explorer and see the BTC balance in the treasury in real-time. No need to send audit teams to count gold bars, and no worries about falsification. This mechanism uses code and cryptography to completely eliminate information asymmetry between countries.

**Reallocation of Power**

The core issue with traditional sovereign currency alliances is: power is concentrated in the hands of a custodian, and other participants can only passively trust. Decentralized solutions, through smart contracts and on-chain transparency, minimize trust costs.

This is why more and more developing countries’ importers and exporters are voluntarily choosing such stablecoins as settlement tools.