TechFlow news, August 21 — According to Fortune, investment banking giant Goldman Sachs released a research report indicating that the stablecoin market is entering a new expansion cycle, with its potential scale reaching trillions of dollars. U.S. Treasury Secretary Scott Bessent also expressed optimism about the stablecoin market's prospects. However, UBS pointed out that stablecoins represent more of a transformation in fund forms rather than net demand growth, and their actual impact depends on the direction and scale of capital flows. Analyst Paul Donovan argued that Bessent’s logic—relying on stablecoins to boost short-term Treasury demand and alleviate fiscal pressure—has flaws: when investors sell Treasuries to obtain stablecoins and then reinvest those stablecoins back into Treasuries, no new demand is essentially created; it is mostly just a change in the form of funds. Currently, stablecoin applications are still dominated by cryptocurrency trading and offshore USD demand, while their potential penetration into payment use cases remains underdeveloped.
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