TechFlow news, June 10 — According to Jinshi Data, China Securities reports that in recent years, an increasing number of payments have been fleeing the dollar-dominated centralized monetary system and moving into digital payment systems (such as Bitcoin). Stablecoins are "dual-faced" currencies that possess both centralized and digital monetary characteristics.
Policies aimed at promoting stablecoin development should focus on strengthening the stability mechanisms of stablecoins: enhancing market "trust consensus" in stablecoins. This is also where recent stablecoin regulatory policies have centered. Judging solely by the current comparison between the total scale of stablecoins and that of U.S. dollars and Treasury bonds, promoting stablecoin development will not bring large-scale inflows of funds to the dollar and Treasuries in the short term.
In the medium to long term, steady development of stablecoins could first allow fiat currencies (such as the U.S. dollar) to benefit from the market capitalization expansion of Bitcoin; secondly, it could clothe fiat currencies in a layer of stablecoin's digital exterior, bridging the divide between centralized credit money and digital currency.
