Recently, the market appears calm on the surface, but undercurrents are surging. Behind routine events like Federal Reserve minutes and large token unlocks, there is a signal that is easily overlooked—

The upgrade of digital fiat currency is coming. Starting from January 1st, digital renminbi wallets will begin accruing interest.

What does this mean? Officially issued digital stablecoins are not only backed by national credit but can now generate yields. At first glance, this doesn’t seem to have a direct impact on the crypto market. But looking at the longer timeline, the issues become clear.

A secure, yield-bearing, compliant, and transparent onshore digital currency system is gradually taking shape. This kind of development hints at the attractiveness of offshore stablecoins—especially for ordinary users in the Asia-Pacific region. If local digital fiat can meet daily payment and savings needs while also earning interest, will users still bother to use USDT? This isn’t an immediate event, but it is indeed a long-term hidden risk.

**Other points to watch this week:**

The Federal Reserve meeting minutes will be released on Wednesday. The key is to observe their stance on the future rate cut path—any dovish signals could boost market confidence.

Projects like OP, SUI, and EIGEN will have token unlocks worth tens of millions of dollars this week. Short-term selling pressure might be significant, so stay alert.

Lighter project is about to launch its initial release. The hype is quite high, but there’s a recent pattern with new tokens—listing often marks the peak, followed by a decline. Be cautious when investing in new tokens.

**Deeper thoughts:**

This upgrade of the digital renminbi is essentially a milestone in the evolution of the national digital currency system. In the short term, its impact on the crypto space is limited, but it reflects a broader trend—countries worldwide are deploying localized, compliant, and more functional digital currencies.

This means the future competitive landscape of the crypto industry will change. It’s no longer just about competing among various coins, but about the scene competition between offshore crypto ecosystems and onshore digital fiat systems. Whoever can dominate core scenarios like payments, savings, and cross-border transfers will hold the initiative.

From this perspective, stablecoins as mere transfer tools don’t have such a deep moat. Future competition may become more complex.