Recent Insights into Payment Transactions
Recent insights from CICC highlight a notable trend: an increasing number of payment transactions are moving away from traditional centralized monetary systems, which have been predominantly controlled by the US dollar, and are instead finding a home in digital payment platforms like Bitcoin.
The Rise of Stablecoins
On the other hand, stablecoins emerge as a unique hybrid currency, encapsulating features of both conventional currencies and digital assets. To effectively bolster the development of stablecoins, it is essential for policies to enhance their stability mechanisms, thereby fostering a shared trust about their reliability among market participants. This aspect is central to the recent wave of regulatory measures surrounding stablecoins.
Market Comparison and Future Potential
An analytical comparison reveals that, at present, the aggregate value of stablecoins pales in size relative to US dollars and US Treasury bonds, suggesting that immediate advancements in stablecoin frameworks are unlikely to lead to a substantial influx of capital into US dollar or US bond markets.
However, over a medium to long-term horizon, the gradual maturation of stablecoins offers significant potential: it can facilitate the integration of the growing market value of Bitcoin into established fiat currencies like the US dollar. Furthermore, stablecoins could provide a digital layer of coverage for these fiat currencies, serving as a vital connector between traditional centralized credit systems and emerging digital currencies.
(Jinshi)
