Core Viewpoint - The article discusses the strategic financial competition between the U.S. and China, highlighting China's significant gold reserves of 74.12 million ounces, which surpasses the U.S. Federal Reserve's holdings by 20% [1][3]. Group 1: U.S. Strategy - The U.S. is not retreating but rather upgrading its "precision hegemony," focusing on controlling key regions while withdrawing from less critical areas [5][7]. - The U.S. has criticized Europe for lagging in military spending and is reallocating resources to counter China, indicating a shift in its global strategy [3][5]. - The U.S. aims to contain China through economic measures such as tariffs and technology restrictions, while simultaneously seeking cooperation in specific sectors like renewable energy [3][7]. Group 2: China's Response - China has been increasing its gold reserves for 13 consecutive months, accumulating 74.12 million ounces, which serves as a financial buffer against potential dollar depreciation [5][7]. - The reduction of U.S. Treasury holdings to $700.5 billion is a strategic move to maintain market influence while mitigating risks associated with U.S. debt fluctuations [7][8]. - China's approach to gold accumulation is seen as a long-term strategy to enhance financial autonomy and resilience against U.S. economic pressures [5][8]. Group 3: Global Implications - The shift in U.S. and Chinese strategies is leading to a reordering of global power dynamics, with China moving from a passive stance to an active role in shaping international rules [7][8]. - The competition is characterized by a contrast between the U.S.'s "small yard, high walls" approach and China's "open garden" strategy, promoting cooperation over confrontation [7][8]. - The ongoing financial competition is viewed as a test of resilience and strategic foresight, with the potential for significant shifts in global governance and economic structures [8].

Group 1 - The European Commission plans to announce new regulations for the rapidly growing stablecoin market, despite warnings from the European Central Bank (ECB) regarding potential instability for regional banks during market volatility [1] - The proposed guidance will treat stablecoins issued outside the EU as interchangeable with those circulating solely within the EU, granting them "equal treatment" [1] - ECB President Christine Lagarde emphasizes the importance of a digital euro for European financial sovereignty and criticizes privately issued stablecoins for posing risks to monetary policy and financial stability [2] Group 2 - The ECB's concerns include the potential for stablecoins to attract bank deposit outflows and their inability to consistently maintain fixed value [2] - An EU Commission spokesperson argues that well-governed and adequately collateralized stablecoins have a very low likelihood of experiencing a run [2] - The spokesperson also notes that in the event of a run, foreign holders would likely redeem their tokens in the U.S., where most tokens circulate and reserves are held [2]