The Genius Act paints a fateful narrative that sees the stablecoin legal tender in the United States, fundamentally challenges the dominance of the traditional banking system - not just in America, but globally, over time. The aim is to create a parallel financial system where citizens can manage their wealth in a self-directed way, under national control but with decentralised technology.

Let us see what parallels and possible implications for Hungary can be drawn from this:

1. Legal status: stablecoin as a means of payment

• In Hungary (and the EU), the stablecoin is currently not legal tender.
• The MiCA Regulation (Markets in Crypto-Assets), which will be phased in gradually in the EU from 2024-2025, will regulate the issuance and use of stablecoins, but will not make them legal tender.
• US precedent effect: if the Genius Act proves successful, the EU will have to catch up, especially in the field of digital payments - which could open the way for domestic adoption later on.

2. Businesses: lower costs, faster settlement

Hungarian entrepreneurs are currently:

• They pay a 1-3% credit card transaction fee.
• They work with a 1-2 day settlement period.
• They are usually strongly linked to banking infrastructures.

Advantages of stablecoin payments in Hungary:

• Instant transactions without a bank intermediary (e.g. via USDC/DAI stablecoin).
• Cost savings: no card fees, no account management costs, no POS equipment rental fees.
• In a few years, the models inspired by the Genius Act could also offer an alternative for Hungarian SMEs, especially in e-commerce and digital services.

3. At citizen level: financial self-determination

The genius act is the financial sovereignty - is that you no longer need a bank licence to access money.

What would this mean for the Hungarian population?

• For groups with difficult access to banking services (e.g. small villages, people with a history of foreign currency debt): decentralised alternative access to money.
• Politically sensitive individuals, entrepreneurs, journalists who may be subject to account blocking, blacklisting: crypto-based money transfers protection and freedom stretch that.

4. Rethinking the function of money

If money is not just a state-issued asset, but a network asset operating on decentralised protocols, it will fundamentally disrupt the Hungarian monetary system.

• The current financial system is highly centralised, controlled by the state and the central bank.
• If you can make payments, savings and loans in stablecoin, then:
• The Bank of Hungary's toolbox is being eroded.
• The role of the banks is being transformed (or marginalised).
• The public can start building a parallel financial system 

Possible future Hungarian impacts

A new era in economic history

The Genius Act could be the beginning of a new era in economic history - not necessarily a "revolution", but a slow, systemic decentralisation that will reach all countries, including Hungary. Those who are prepared (infrastructure, legislation, education, corporate mindset) will have a head start, those who resist may miss the next wave of financial and digital modernisation.

🇭🇺 If I were the Hungarian government and my goal was to regain monetary sovereignty, to replace the fiat system

Bitcoin as a state reserve asset or as a backing for a national currency is no longer a theoretical issue - several countries are considering or have already moved in this direction (e.g. El Salvador, Central African Republic). But in the case of Hungary, it would mean a major systemic shift.

Strategic goal:

The partial or full Bitcoinization of the Hungarian forint and, in the long term, the creation of a parallel financial system where citizens can manage their assets in a self-directed way, under national control but with decentralized technology.

1. Building a Bitcoin pool at national level

• The MNB is gradually buying Bitcoin as a foreign exchange reserve (in addition to today's EUR, USD, gold reserves).
• They are not stored with an external service provider, but in a separate, multisig cold storage.
• Provision: e.g. 5-10% BTC in the international reserve.
• A voluntary BTC purchase scheme with reduced tax rates may be launched for Hungarian citizens.

2. Legal framework and education

• Legally recognise Bitcoin as a "digital store of value" and make HODL tax exempt (like Switzerland).
• A public education campaign is launched: how it works, how to store it, what the risks are.
• The Hungarian Treasury may introduce a Bitcoin Treasury account, which will be linked to hedging mechanisms.

3. Introduction of a backed forint (e.g. HUF-BTC) on a pilot basis

• The introduction of a new tokenised HUF-BTC stablecoin, which the MNB will link to the national Bitcoin reserve at a 1:1 ratio.
• It can act as digital cash, similar to a CBDC (digital central bank cash), but it is not programmed or controlled.
• Settlement: on-chain, for example on Liquid, Lightning or RSK networks.

4. Building an acceptance ecosystem

• Public institutions, offices and websites accept BTC or HUF-BTC: e.g. for tax payments, fees, government services.
• VAT refund in BTC is an optional option.
• Tax and administrative benefits for SMEs if they accept payments in BTC/HUF-BTC.

5. Development of technological infrastructure

• Open source Hungarian wallet application (non-custodial!) support.
• Building a Lightning-based transaction infrastructure for rural shops, schools, small villages (digital inclusion!).
• National on-chain settlement system within the Hungarian State Treasury.

Challenges and risks

A Bitcoin-backed forint is not a sci-fi concept - it could be the start of a sovereign, competitive economic model for a small, open country that recognises the new logic of the digital age.

The future Hungarian economic model starts with individual sovereignty and self-determination. With people, not institutions and not banks. With you! 💪

This path would not be painless, but it could clearly lead to lower levels of vulnerability, higher economic autonomy and a new system of trust.