What is the status of crypto ETFs as U.S. government shutdown heads into week 3?

Author: Liu Honglin Throughout his life, Hayek maintained a wary distance from state power. He didn't believe the state could properly manage currency, just as he didn't believe a planned economy could properly manage human freedom. In 1976, he published "The Denationalization of Money," proposing a subversive proposition: that currency should be privately issued, with the market determining its merits. At that time, the world was still reeling from the afterglow of the Bretton Woods system. Hayek's vision of free currency competition seemed like nothing more than an academic's dream: Who would allow "private currencies" to circulate in reality? But today, fifty years later, the stablecoins of the Web3 world are reviving this dream on-chain in an unexpected way. Hayek: Let the money return to the market In Hayek's view, state monopoly on currency issuance is the root cause of modern inflation and financial cycles. The government uses inflation to dilute debt and cover up fiscal deficits, while the public bears the cost in the form of reduced wealth. He proposed: "Let private institutions freely issue currency and let the public freely choose which currency to use." The market will automatically punish unstable and untrustworthy currency issuers and reward stable and reliable currencies. Just like consumers choose products. This idea later became known as the "competitive supply theory of money." In Hayek's imagination, currency is no longer a "sovereignty" defined by the state. Rather, it is a kind of "contractual credit" generated by market competition. But in the 1970s, there was no technology to support this idea. The accounting, settlement and credit verification of currency are inseparable from centralized institutions. It wasn’t until 2008, when Satoshi Nakamoto published the Bitcoin white paper, that Hayek’s almost forgotten book suddenly had new readers. Bitcoin: A decentralized cryptographic practice The invention of Bitcoin is a rebellion against monetary thinking. It does not rely on the central bank for issuance or state endorsement, and has a fixed total amount, a public algorithm, and a transparent ledger. This is exactly the prototype of the "denationalized currency" that Hayek wanted. But Bitcoin also exposes the first paradox of "market currency": price stability. Its scarcity ensures anti-inflation, but also leads to violent fluctuations—— A "free currency" that cannot become a stable payment medium will only become a speculative asset. What Hayek wanted was stable credit, but what Bitcoin gave was market frenzy. Thus, stablecoins emerged. Stablecoins: A revised version of non-nationalized currencies The emergence of stablecoins is a compromise between technology and credit. It not only retains the openness of the decentralized system, but also introduces an anchoring mechanism to ensure price stability. In this respect, it is closer to the "private currency" envisioned by Hayek than Bitcoin. Based on the collateral and issuance mechanism, stablecoins can be roughly divided into three categories: Fiat-collateralized (e.g., USDT, USDC): Tokens are issued on-chain at a 1:1 ratio, with the issuer holding an equivalent value of USD or short-term debt assets. These tokens are redeemed upon redemption. Advantages include stability and high liquidity; disadvantages include strong reliance on the banking system and regulatory arrangements, resulting in a low level of decentralization. Crypto-collateralized (e.g., DAI, LUSD): Users over-collateralize with ETH, BTC, and other assets to mint stablecoins on-chain. Prices are maintained through a liquidation mechanism, interest rate adjustments, and oracles. Advantages include on-chain self-regulation and transparency; disadvantages include exposure to crypto asset volatility and liquidation efficiency. Algorithmic/hybrid (such as FRAX, USDe, and the now-defunct UST): These attempt to achieve a "soft peg" through financial engineering, using supply adjustments, derivatives hedging, or partial collateralization. Their advantages are capital efficiency and increased decentralization; their disadvantages are vulnerability to extreme market conditions and the potential for a "death spiral" if not carefully designed. From the perspective of institutional logic, these stablecoins are implementing Hayek’s core proposition: Let currency become a product of market competition. Institutions or communities such as Tether, Circle, and MakerDAO have in fact become "private central banks." They issue and maintain currency stability based on algorithms, collateral, or market trust. Users no longer choose which currency to use based on state coercion, but rather on trust and convenience. This is exactly the "free monetary competition" scene that Hayek dreamed of. However, the reality of stablecoins is still three ways away from the ideal of "non-nationalized currency". Anchoring to the US dollar: the illusion of denationalization The vast majority of stablecoins are pegged to the US dollar. Although they are privately issued, they still operate under the US dollar system. The essence of USDT is a shadow bank using government bonds and commercial bills to "Digitally recreate" the credit of the US dollar on the blockchain. This is not the denationalization of currency, but the recolonization of the dollar. Stablecoins appear to weaken a country's monetary sovereignty, but in fact they strengthen the United States' monetary hegemony. Hayek may not have expected that the "currency competition" he dreamed of would become the "technological extension of the US dollar" in the reality of globalization. The resurgence of regulation: the tug-of-war between freedom and order Hayek hoped that the money market could form its own order through competition. But the systemic risks of the modern financial system make regulation necessary. US SEC, FinCEN, EU MiCA, Hong Kong SFC... They are all bringing stablecoins under licensing management in different ways. Circle actively seeks regulatory cooperation, while MakerDAO attempts to remain "compliance neutral." This game reflects the rebalancing of liberalism and sovereign order. The ideal of decentralization must be implemented within the legal framework. Even if currency is denationalized, it will eventually still have to face the reintegration of state regulation. Algorithmic Credit: A New Form of “Trust Economy” Hayek believed that the market would punish bad money, but the collapse of algorithmic currency shows that algorithmic credit does not automatically equal market trust. The collapse of TerraUSD (UST) has shown people that “free currency” can also self-destruct. Algorithms cannot replace the central bank's lender of last resort function. The shift of credit from the state to the algorithm is simply a shift from one political belief to another. The essence of money—an organized form of trust—has not changed. Despite this, stablecoins have made Hayek's vision materialize on a global scale for the first time. The “currency competition” he envisioned is now happening in the form of network protocols: On the chain, anyone can issue, hold, and exchange their own currency; The market chooses who to trust through price, liquidity, and transparency; Algorithms and smart contracts assume part of the functions of the credit order. If Bitcoin has completed the ideological enlightenment of "currency denationalization", Then stablecoin is an institutional experiment of "non-nationalized currency". It is not a revolution, but a reconstruction. The state is no longer the only creator of money. The market, technology and community all participate in the production of credit. Hayek believed that spontaneous order was the force behind the evolution of human institutions. And blockchain is the modern form of this power. No central planning, no sovereign coercion, But it can generate order through code and consensus. The existence of stablecoins proves this. Conclusion: The Future of Money Hayek's complete "denationalization" may never be achieved, but the future of currency is indeed moving from "single sovereignty" to "multi-center order." In this new system: Sovereign currencies continue to exist and serve as the basis for finance and payments; Stablecoins become a medium of liquidity in cross-border, on-chain economies; Algorithmic credit, RWA collateral, and central bank digital currency (CBDC) coexist and compete; Laws and algorithms jointly define the "trust boundaries" of currency. This is a new monetary pluralism. Hayek might be surprised to find that his "theory of private currency" is being reinterpreted in the 21st century in China, Hong Kong, Dubai and the Ethereum community. It is not about complete laissez-faire, but about finding a new balance between regulation and technology. Stablecoin is not the ultimate realization of Hayek, but it allows us to re-understand the social nature of "money": Trust does not have to be monopolized; credit can be distributed. In this sense, stablecoins are indeed a resurrection of Hayek. Only this time, the resurrected soul is not in a Viennese coffee shop, but on the consensus network of the blockchain.

In the race for scalable decentralized finance, Sui Network has emerged as one of 2025’s most-watched Layer-1 contenders. The chain’s object-based parallel execution and low-latency consensus have drawn developers looking for speed beyond Solana. Daily active wallets have surged, and DeFi total value locked (TVL) passed $2 billion, according to DefiLlama dashboard. But throughput alone […]

BitcoinWorld Bitcoin Investment: ZOOZ Power Unveils Bold $180M Strategy In a surprising and bold move that has captured the attention of both the financial and cryptocurrency worlds, ZOOZ Power, a company at the forefront of electric vehicle (EV) charging infrastructure, has announced a massive Bitcoin investment strategy. This isn’t a small foray into digital assets; the company has approved a staggering $180 million private placement, with a significant portion – approximately 95% – earmarked for purchasing BTC. This strategic pivot signals a growing confidence in cryptocurrencies as a legitimate treasury asset among publicly traded companies. What’s Driving ZOOZ Power’s Bold Bitcoin Investment? ZOOZ Power (Nasdaq: ZOOZ) is primarily known for its innovative technology in the EV charging sector. Their decision to allocate such substantial capital to a Bitcoin investment strategy, approved at a special shareholders’ meeting, marks a pivotal moment for the company. This plan to raise $180 million was first unveiled in late July. The subsequent approval underscores a deliberate shift in the company’s financial strategy. Many analysts believe that companies like ZOOZ Power are looking to digital assets for several reasons: Diversification: Adding non-traditional assets to their balance sheet. Inflation Hedge: Protecting capital against the devaluation of fiat currencies. Potential for High Returns: Capitalizing on Bitcoin’s historical growth trajectory. This move positions ZOOZ Power among a growing list of corporations exploring the benefits of holding cryptocurrencies. How Will ZOOZ Power Execute This Massive Bitcoin Investment? The approved $180 million will be raised through a private placement. This financing method involves selling shares or other securities directly to a select group of investors, rather than through a public offering. Once these funds are successfully secured, ZOOZ Power intends to proceed with its large-scale acquisition of BTC. While specific details on the execution method are yet to be fully disclosed, companies typically utilize reputable cryptocurrency exchanges or over-the-counter (OTC) desks for such substantial purchases. This approach helps to minimize market impact and ensure efficient execution. The scale of this Bitcoin investment suggests a long-term strategic commitment, rather than a short-term speculative play. It also raises important questions regarding asset custody and security, crucial aspects for any company holding significant digital assets. Exploring the Benefits and Risks of Corporate Bitcoin Investment ZOOZ Power’s decision to pursue a substantial Bitcoin investment strategy comes with both exciting opportunities and notable challenges. Understanding these aspects is crucial for stakeholders and market observers. Potential Opportunities: Asset Appreciation: Bitcoin has historically demonstrated significant price growth, offering a potential boost to the company’s treasury. Inflation Protection: As a scarce digital asset, Bitcoin can serve as a hedge against inflation and currency debasement. Market Differentiation: This bold move can attract new, crypto-savvy investors and generate considerable media attention. Future-Proofing: Embracing digital assets aligns the company with evolving financial landscapes and technological innovation. Potential Risks: Price Volatility: Bitcoin’s price can experience dramatic swings, potentially impacting ZOOZ Power’s financial statements. Regulatory Uncertainty: The evolving global regulatory environment for cryptocurrencies could introduce unforeseen challenges. Security Concerns: Holding large amounts of BTC requires robust cybersecurity measures to prevent theft or loss. Shareholder Sentiment: Not all shareholders may be comfortable with the inherent risks associated with cryptocurrency holdings. Companies considering a similar path must implement comprehensive risk management frameworks and transparent communication strategies to navigate these complexities effectively. A New Era for Corporate Treasury? ZOOZ Power’s approval of a $180 million private placement for a significant Bitcoin investment is more than just a financial transaction; it’s a powerful statement. This move by an electric vehicle charging infrastructure company highlights the increasing mainstream acceptance and strategic consideration of digital assets in corporate finance. It suggests that Bitcoin is no longer solely the domain of individual investors or specialized crypto firms but is evolving into a recognized treasury asset for diverse industries. As ZOOZ Power embarks on this innovative financial journey, the corporate world will undoubtedly be watching closely. This decision could pave the way for more companies to explore similar avenues, further integrating cryptocurrencies into the global economic fabric and potentially redefining traditional treasury management strategies. Frequently Asked Questions (FAQs) Q1: What is ZOOZ Power’s primary business? A1: ZOOZ Power (Nasdaq: ZOOZ) specializes in developing and deploying innovative electric vehicle (EV) charging infrastructure solutions. Q2: How much money is ZOOZ Power planning to invest in Bitcoin? A2: ZOOZ Power has approved a plan to raise $180 million through a private placement, with approximately 95% of those funds intended for a Bitcoin investment. Q3: Why is an EV charging company investing in Bitcoin? A3: Companies often invest in Bitcoin for reasons like balance sheet diversification, as a hedge against inflation, and to potentially benefit from its long-term capital appreciation, viewing it as a strategic treasury asset. Q4: What are the main risks associated with this corporate Bitcoin investment strategy? A4: Key risks include Bitcoin’s high price volatility, evolving regulatory uncertainty, the need for robust security measures for digital asset custody, and potential concerns from shareholders regarding the risk profile. Q5: Has any other publicly traded company made a similar move? A5: Yes, several publicly traded companies, such as MicroStrategy and Tesla, have previously announced significant allocations of their treasury assets into Bitcoin. What do you think about ZOOZ Power’s bold move into Bitcoin? Is this the future of corporate finance? Share your thoughts on social media and let us know if you believe this is a smart strategic decision! To learn more about the latest Bitcoin trends, explore our article on key developments shaping Bitcoin institutional adoption. This post Bitcoin Investment: ZOOZ Power Unveils Bold $180M Strategy first appeared on BitcoinWorld.