一口气了解稳定币

Hi

friends,

let's talk about

the topic that has received the most private messages to me recently:

Stablecoin.

On May 20,

the U.S. Senate passed

the key procedural vote on the Stablecoin "Genius Act".

Soon after,

Hong Kong passed the "Stablecoin Bill".

The European Union, Singapore, the United Kingdom, South Korea, etc.

have successively

launched stablecoin-

related regulatory legislation drafts

within this year

. Even Pan Gongsheng, the governor of the People's Bank of China,

publicly discussed stablecoins for the first time in June.

On the market side,

the first stablecoin stock Circle went public

and its stock price rose by 750% in less than a month.

Companies controlled by the Trump family

have also issued their own stablecoins.

Payment giants such as Paypal and Stripe, JPMorgan Chase

, Citigroup, Goldman Sachs, etc. Banks,

including domestic JD.com, Ant, and Xiaomi

, have already taken the lead in rushing into the stablecoin market.

I believe that many people may subconsciously think

that the concepts in the currency circle

are just hype

money-making

, or that this is all a conspiracy and

a trap of the United States

. But think about it, so many governments of so many countries and regions

, so many mainstream large companies have all rushed in.

It is impossible that they are all for the purpose of making money

or rushing

in knowing that it is a trap,

right? Why do you think

everyone is rushing in all of a sudden

? Is this stablecoin the future of the financial market?

Let's take a look at

the chaotic battlefield of stablecoins

in one go. Before I start, let me say that

recently someone has been using the name of Xiao Lin

to create a group on social media

to teach everyone how to invest.

There are even those with AI dubbing, which

are all scams! !

We will not send private messages to everyone,

will not create a group,

will not teach everyone how to invest

, but anyone we see is a scammer! !

We have reported everything

we have seen, including what everyone has told us,

but the speed at which this scammer came out

is really too fast,

so I hope that if you see it,

you can also help us report it,

but the most important thing is

not to believe it! !

First of all,

we will talk about the characteristics of stablecoins and

some basic information about the stablecoin market.

If you say that

you just want to see what the United States thinks

and what other countries are doing

, then you can jump to this point in time.

Stablecoins

are a type of cryptocurrency.

Like Bitcoin and Ethereum, they

are all built on the blockchain,

but the biggest difference is that

they are stable.

Most of them are 1:1 tied to the US dollar.

Currently, each private company

can issue its own stablecoin.

For example, the stablecoin with the largest market value

is called Tether USDT.

It is issued by a company called Tether.

You can take one dollar to find Tether

, and Tether will take the dollar away from you

and create a

Tether worth one dollar

on the blockchain

and put it in your wallet.

When you get this coin,

it can circulate freely

on most chains in the crypto world

, and you can use it to pay,

trade invest etc.

Let's think a little deeper.

Why can Tether

guarantee that USDT is stable at one dollar?

Why is it not like

The reason why Bitcoin

is so popular

is that it guarantees that

I can issue a coin for one dollar

and redeem a coin for one dollar at the same time.

That is to say, its buying price is one dollar and

the selling price is also one dollar

, and there is no limit on the quantity

. In this way

, once the market price is higher than one dollar

, you can buy it from Tether and

then sell it on the market .

If the market price is lower than one dollar,

you can buy it on the market

and sell it to Tether.

In this way

, the market will automatically lock the price

at around one dollar.

How can Tether guarantee

unlimited redemption?

Because every coin it issues

requires at least one dollar of savings as a guarantee.

This is a bit like when the Federal Reserve issued dollars in the early days,

it had to be backed by gold

. This stablecoin

is actually backed by the US dollar

and is 100% guaranteed .

For example, if you look at Tether's first quarter report,

it issued a total of 143.68 billion Tether coins at the time

, and its reserve assets

were 149.27 billion US dollars.

You see, it is still 5.6 billion richer

. So you found that

you don't even need To understand what blockchain

cryptocurrency

is, it is actually a bit like a game company

issuing its own game coins and Q coins

, and then using collateral assets

to guarantee the value of the game coins.

Of course

, there are actually decentralized collateralized stablecoins

and there are also stablecoins that are purely maintained by algorithms

, but these

are not large

in terms of volume.

Now , the two most important stablecoins

are Tether, which

accounts for about 60%,

and USDC, which is

issued by Circle, which has just been listed,

and accounts for 24%.

These two are the kind of stablecoins that we just talked about,

which are issued and guaranteed by a company

. And this time, various legislations in various countries

are mainly aimed at stablecoins in this situation.

Don’t you think it’s ironic?

Although the concept of blockchain is decentralization

, the mainstream of stablecoins

, which are built on blockchain,

still relies on this centralized model

issued by an institution.

I tell you that

the profit margins of these companies that issue stablecoins

are terrifying.

Tether’s profit last year was

13 billion US dollars

, and it

has only a little over 100 employees

per capita. The profit is more than 100 million US dollars

. How do these stablecoin issuing companies

make money?

Well, it is actually very simple.

When they issue stablecoins,

don’t you give them one dollar?

They mainly rely on the interest brought by the investment of this dollar .

Of course, they usually invest in

extremely stable short-term treasury bonds

or overnight reverse repurchases,

but you think the current US interest rates are so high,

so the interest they can get

is very considerable.

For example, Tether

has issued 150 billion US dollars of Tether.

Let’s calculate it at 4% interest,

which is 6 billion US dollars a year.

I estimate that

if

a company issued a Japanese yen stablecoin a few years ago,

it would probably be broke.

And another stablecoin issuing giant Circle

can grow so fast.

In fact, it is heavily dependent on exchanges.

The interest income in 2024 is 1.68 billion US dollars

, but more than 1 billion of this

will be distributed to exchanges

. Then the exchanges will pay out of their own pockets to provide subsidies

, incentives and returns

to attract users.

For example, users deposit USDC in it

. In addition to the normal annualized income,

the platform will subsidize part of the incentives.

Do you think this chain of interests

is a bit like the incentive cycle of credit cards

? Oh, that's a bit off topic.

Let's talk about

why so many people

are interested in stablecoins

and think they are very important.

The main reason is that

it can not only be used as currency in the crypto world, but

it

also seems to have obvious advantages

if you use it in some real economy transactions.

First of all, it is very convenient, which

is especially obvious compared to cross-border remittances .

The average handling fee for

traditional cross-border remittances through banks

for slightly smaller currencies

is more than 5%

, and it may take several days.

But stablecoins

are all on the blockchain, so

there is no cross-border

, no exchange rate conversion,

no bank connection,

no SWIFT, and the

funds are credited in minutes,

and the handling fee is much lower

. At the same time, It is also private.

It is just like trading game coins

in the game world.

You may only know

that the other party is called "The Dream of Nine Hundred Million Girls"

but you don't know that the other party is Mr. Wang next door.

Of course, the difference between the crypto world and the game world is

that all the ledgers

on the blockchain are public.

So you can not only see the transaction between him and you,

but you may also see this "The Dream of Nine Hundred Million Girls".

I just transferred 120 coins to "Sad Tears"

yesterday, and received 32 coins from "Lonely Zhang Wuji" last month, etc.

Anyway, everything is public.

In fact, this convenience and privacy

is an advantage of all cryptocurrencies

. This is why everyone advocated Bitcoin at that time.

But at the same time,

stablecoins

make up for Bitcoin's biggest shortcoming. It

is stable,

convenient,

private,

and stable.

Just looking at these three advantages,

isn't it an ideal transaction currency?

So although stablecoins

are still in a very early stage

, they have already attracted a large number of

economic activities that require these three features.

The first one,

I guess everyone can guess,

is the black market.

Many people used Bitcoin to launder money before,

and they may feel that it is not stable enough.

Now that stablecoins have made up for this shortcoming,

they will naturally be favored by a large number of underground transactions

. Maybe the "Sad Tears" and

"Lonely Zhang Wuji"

are doing some black activities behind the scenes,

and it is hard to say.

Another one

is the cross-border payment we just mentioned

. About a year and a half ago,

the cross-border payment application of stablecoins

was almost zero,

but It has now

reached about 50 billion US dollars per month

and is still

growing at an astonishing rate of

20%-30% per month. The global cross-border payment market size

is about 200 trillion US dollars per year.

You see, the ceiling is still quite high.

This is why giants

like Amazon, Walmart, and JD.com

, which are involved in cross-border payments and

seem to

have nothing to do with cryptocurrencies,

are at the forefront of the layout of stablecoins.

Another major application at present

is that in countries with high inflation,

it is actually a bit like

using a digital dollar.

For example,

after 2022,

people in Argentina, Nigeria, Brazil, and Turkey

can be said to be

suffering from the rapid depreciation of their own currencies. What should we do

when our own countries

are troubled by the strict foreign exchange controls

?

The people in these countries

have begun to use stablecoins

for transactions and payments on a large scale

. Originally, the first reaction of the governments of these countries

would definitely be to ban and restrict them.

However, since the people's demand for stablecoins

is too strong,

they can't stop it,

so they simply make a 180-degree turn and

become the pioneers in actively supporting stablecoins. Instead

of letting so much money flow into the black market,

I might as well go with the flow

and open

up to stablecoins.

Brazil, for example, has directly started a pilot program

to connect stablecoins to

Brazil's official payment system PIX.

In Argentina,

you can also legally use stablecoins to pay rent

etc.

At present,

the total amount of stablecoins in the world

exceeds 250 billion. The U.S. dollar

has increased more than 20 times in five years.

Although its total market value

is still not comparable to Bitcoin's more than 2 trillion U.S. dollars,

it is only about 1/8 of it

. In fact,

if we look at the transaction volume,

stablecoins have exceeded Bitcoin.

This also indirectly confirms

its very strong currency attributes.

In 2024, the transaction volume of stablecoins

will be 27.6 trillion U.S. dollars.

Although it is still in its infancy

, this transaction volume

has exceeded

the total payment of Visa and Mastercard in 2024.

It can be seen that its potential cannot be underestimated.

Just now, in order to quickly introduce its development,

we mainly talked about some of its positive attributes.

At present, it

still has many risks and problems .

It has extremely strong speculative attributes

and is related to money laundering. The pegged currency

may have a major collapse

or fraud

every once in a while

, and then people will naturally have a bad impression of it.

This is actually why the officials of most countries

have never been very fond of stablecoins.

But in fact, part of the reason

is that countries do not have clear regulatory

and ambiguous laws,

and you don’t know what is legal and compliant.

Where is the red line?

Therefore, most multinational companies

and most economic activities

dare not get involved in this field,

which also leads to many participants in cryptocurrencies

engaging in money laundering and

speculation.

This is why the recent legislation of various countries,

no matter how strict it is,

is a major benefit

to stablecoins and even the entire currency circle.

As for why

countries have suddenly started to legislate recently?

Well, this is actually

related to the game between big countries and the game of currencies.

The main driving force is naturally

the United States.

Let's first take a look at

some of Trump's major actions around cryptocurrencies

since he took office this

year. In January, as soon as Trump took office

, he immediately signed an executive order

titled

"Strengthening America's Leadership in Digital Financial Technology."

You see,

the name is very straightforward,

and the ban on digital dollars

basically sets the tone

for cryptocurrency.

I absolutely support it.

Also in January,

Trump issued his own $TRUMP coin,

80% of which

are controlled by Trump's companies.

This is not a stablecoin.

It is like Bitcoin, which can fluctuate in price. It

once rose to more than $80.

The total market value is as high as 60 billion US dollars

, but now it has fallen to less than 10 US dollars.

A few days later,

Trump's wife also issued her own currency,

and his son also issued his own currency.

In March, Trump announced

that the bitcoins previously confiscated by the government

would be listed as "US Strategic Crypto Reserves"

and could not be sold casually.

After that, Trump's affiliated companies

issued a stable currency USD1.

Originally, the scale was also small,

about 100 million US dollars.

As a result, on May 1, it suddenly increased more than ten times

to 2.2 billion US dollars.

What's going on?

Because Abu Dhabi came and

the Abu Dhabi Investment Authority

invested 2 billion US dollars.

To be honest,

a US president can issue his own currency.

Although I don’t know much about US laws

, I am still quite surprised by this behavior,

but it is very obvious that there is a conflict of interest.

What is the key?

The market reaction seems to be OK. It can be seen

that everyone seems to be quite accepting

of Trump's actions .

Of course.

The "Genius Bill" is

what has a major impact on the stablecoin market.

It's called a genius bill

, not because

Trump thinks it's genius,

because its abbreviation is GENIUS. It

's a U.S. legislative proposal for stablecoins. It was

passed by the Senate with a high vote on June 17,

but it hasn't been passed by the House of Representatives yet,

so it's still just a draft.

This draft is not

as perverted as the Big, Beautiful Bill, which

has more than 1,000 pages. It's

only 20 to 30 pages in

total , so I can roughly scan

its core .

Most of them are quite standardized.

In fact, this is not only in the United States.

The legislation in most other countries is

pretty much the same.

Let me briefly summarize it.

There are probably these points.

First of all, in terms of qualifications,

companies that issue stablecoins

must have a license.

Who can issue and who can't issue is

up to our government to decide.

But

in the end, is it the state government or the federal government that has the final say

? It is still under discussion

. As for supervision,

it has stipulated

which institutions are responsible,

so you don't need to know.

In addition, in terms of reserve assets,

it requires that all stablecoins issued

must have high-quality assets as reserves

, such as short-term Treasury bonds

and overnight reverse repurchases. These have very good liquidity

, and they cannot be used as collateral.

These reserve assets

have the highest priority when it comes to repayment.

For example, if the company issuing the stablecoin goes bankrupt,

you cannot use these reserves to repay the debt first,

you have to give them to the holders of the stablecoin first

. In addition,

there are some risk management requirements,

information disclosure requirements,

anti-money laundering requirements, etc.

To be honest ,

after working in the bank for a long time,

you are quite familiar with these requirements.

It is a very standard three-piece set.

However, compared with bank supervision

, its requirements for reserve assets are obviously stricter.

You want 100% reserves.

After all, these companies

are really a bit like issuing a currency. You can

imagine that banks have to spend so much effort on compliance, and

companies in the cryptocurrency industry have to spend even more

effort on compliance

. Let's talk about compliance.

What is "compliance"?

It means how to comply with the laws and regulations of various countries

, such as various license audit requirements,

anti-money laundering requirements,

technical security requirements,

reserve asset requirements, etc.

Now all countries have to introduce these "regulations" first before

they can comply.

For example, although Tether

has the largest market size now ,

it may be driven out of the US market

due to insufficient information disclosure

and registered in the Virgin Islands

instead of the United States due to non-compliance. In fact,

compliance is more important

not only for stablecoin issuers, but

also for these cryptocurrency exchanges.

Because the various regulations in the early market were not

perfect, the trading platform can be said to have grown wildly.

In the past two years,

with the standardization of this supervision,

it has actually brought a wave of rectification to major exchanges.

For example,

there is a very large cryptocurrency exchange

called OKX In the United States, it

just reached a settlement with the Department of Justice in February this year,

paid a fine of 84 million US dollars

, and directly gave up 420 million US dollars in revenue.

Later, because it was discovered that an illegal organization

used Web3 wallet chain transactions to launder money,

it took the initiative to shut down the on-chain transactions of Web3 wallets

in March . Do you feel that he

has suffered heavy losses

this year for compliance

? In fact,

he also saw the importance of compliance,

so he simply catered to the supervision and took the

initiative to pay the fine and settle with the US Department of Justice.

The Web3 wallet chain transaction

was also proactively shut down.

What I mean is, hey,

European and American regulators,

you see, we attach importance to compliance

and security,

we perform well

and be a good exchange that abides by the law

. At the same time,

although the supervision does not require the exchange's reserves

, it has also

issued a 100% reserve proof report like the company issuing the stablecoin. It

will be released every month

from the end of 2022.

Users can also check

whether their funds

are supported by 1:1 real reserves.

In short, it is very active,

which also helped them successfully obtain

licenses in the United States, the European Union, Singapore, Dubai and other regions

to cater to supervision It

will indeed bring huge initial costs to

cryptocurrency companies

, but in the long run,

it will have huge benefits

for both user trust and regulatory trust.

There were rumors a few days ago that

OKX was considering listing on the U.S. stock market.

Now it

makes more sense that

it went through so much trouble before

, paying fines

and shutting down wallet chain transactions .

Hey, let me tell you

that listing on the U.S. stock market

actually has a very unusual meaning

in the cryptocurrency circle ,

because for them,

it is equivalent to a very strong

certificate of compliance with the U.S. market.

To be honest,

these cryptocurrency companies are not actually short of money. What they

lack is credit

and certificates.

This is their biggest benefit from listing on the U.S. stock market.

Whether it is for users, investors

partners

, or even regulators,

it has a very big credit bonus.

This is why

Coinbase has always been

a typical good student

in cryptocurrency compliance,

including Circle, which has just been listed, and

has done the most and most fully in terms of compliance.

In fact, it has helped them

to seize most of the U.S. market first

. So why

is the United States so actively promoting stablecoins?

In summary,

it has three main purposes

One is to maintain or even strengthen the status of the US dollar,

another is to increase the demand for US debt,

and the other is to seize the status of the crypto world.

Of course, some people say that there should be another point

. Trump himself wants to make money.

You see, he has issued so many coins.

He just wants to, right?

We will not comment on this.

Let's mainly discuss the three points before.

First, strengthen the status of the US dollar

. US Treasury Secretary Bessant

clearly stated in March that

the Trump administration will use stablecoins

to maintain the dominance of the US dollar.

We have mentioned it many times before.

Recently, especially after Trump took office,

many countries

and even the entire market

have been very slowly de-dollarizing.

This is definitely something the US government does not want to see.

As for stablecoins,

although it can be linked to anything,

it can have euros, stablecoins,

and offshore There are stablecoins for RMB and

stablecoins for gold

, but in fact,

99% of the market is still stablecoins for US dollars.

In the short term, promoting stablecoins

is equivalent to promoting the US dollar, right?

Although the transaction of stablecoins is on the chain

, the collateral behind them is all US dollars

, and it is also pegged to the US dollar exchange rate

. Let's take a slightly extreme assumption.

For example, Kazakhstan,

Turkey, Nigeria, and Argentina

all use stablecoins for transactions in US dollars.

Then ,

no one will use

the lira, naira

, and peso printed by these countries

, and the interest rates they set will be useless. It is basically equivalent to these countries using US dollars and

being completely dollarized.

Therefore, if US dollar stablecoins

are widely used in non-US dollar countries,

this will definitely enhance the application scope

and international status

of the US dollar. This is very easy to understand.

Then It

is to stimulate the demand for U.S. Treasury bonds.

Think about it,

because most stablecoins are pegged to the U.S. dollar, 60%

of the reserve assets behind them

are now short-term Treasury bonds.

After the legislation, there may be more.

For example, Tether

is the largest issuer of stablecoins.

In 2024, the net purchase of U.S. Treasury bonds was US$33.1 billion.

This was the seventh largest buyer of U.S. Treasury bonds in the world last year.

Bensont also said at the hearing

that by 2028 ,

the scale of stablecoins may increase eightfold,

and the demand for short-term U.S. Treasury bonds

may exceed 1 trillion.

You see, U.S. Treasury bonds are worried that no one will buy them.

Isn't this good? Everyone has mentioned this point a lot,

because his logical chain

is very logical and

reasonable.

However, I personally think that

this is not the main reason why the United States has been so hasty

in introducing the stablecoin bill.

Of course This is purely my personal opinion.

You can listen to what I think.

First of all, the demand for these U.S. bonds

is not a brand new demand

, but this is not the most critical point

. The more critical point is the term of the treasury bonds.

People often say that

Tether is the largest holder of treasury bonds and

how many U.S.

bonds it has bought. The main thing to look at is its holdings of treasury bonds

, but for U.S. bonds,

the term is very important. Most of

the treasury bonds reserved by these stablecoins

are ultra-short-term treasury bonds

within 3 months. For example,

the treasury bonds purchased by

Japan and the People's Bank of China with foreign exchange reserves

are medium- and long-term treasury bonds of 3 to 30 years.

The two are completely different concepts.

Friends who have done transactions should know that

there is an essential difference

between 3-month treasury bonds and 10-year treasury bonds

. For this ultra-short-term interest rate

In fact, it is not the market demand

that plays a decisive role.

Who is it?

The Federal Reserve.

The Federal Reserve can just cut interest rates by 25 basis points. It

can be more useful than 10 Tethers

buying 3-month short-term treasury bonds like crazy

.

This part is a little bit skipped.

I didn't go into detail.

Anyway,

the US government is not worried about selling

these ultra-short-term treasury bonds . What it worries about is the long-term treasury bonds.

We talked about the Mar-a-Lago agreement before.

Didn't Milan also suggest

that other countries can replace those short-term treasury bonds

with long-term

or even ultra-long-term treasury bonds

? I don't care

if you buy short-term

ones . It's better to replace them with long-term

ones. In short, if you say that the United States has spent a lot of time and effort

to urgently launch such a set of cryptocurrency bills

to promote the development of the entire crypto world,

it has brought huge uncertainty

. It is for the increase of

$1 trillion

in demand for short-term Treasury bonds in three years

. I have doubts about this.

This increase in demand for Treasury bonds is definitely a benefit

, but I think

it is far from the most important and fundamental purpose of the United States.

The other two points are

much more important. Let's look at the third point, which

is to compete for the right to speak in the crypto world.

Before,

the United States mainly watched cryptocurrencies.

As it watched, it found

that after so many years

,

it seems that the crypto world is not a flash in the pan.

Its demand is continuing to expand, and its

concepts are constantly being updated.

There are even signs of challenging the traditional financial system.

Since I can't suppress it

, I might as well embrace it

and take the lead in

legislating and standardizing.

In fact, it is not only the United States, but also

the countries and regions that support stable currency legislation

. The United States is not the first

to have this goal.

You can see that Europe, Singapore, and Hong Kong

have all launched stablecoin drafts

. Countries like Switzerland in the Middle East

have always been very supportive of blockchain.

So we can't say that the United States is trying to get ahead. We can

only say that it is trying not to fall behind and

not lose its position as a global reserve currency

in this new battlefield of the crypto world ,

right? We can only expedite legislation.

Now let's talk about China.

We know that

mainland China has always banned cryptocurrencies.

The main push at present is

the digital RMB

, but this digital RMB

is still very different from stablecoins.

Well, we'll talk about

this when we have a chance. After all, the United States wants to seize the dominant position in stablecoins,

and China must be afraid of missing this train

and also wants

to strive for offshore in new markets . The voice of RMB,

so now it is mainly in Hong Kong

to pilot stablecoins. The RMB stablecoin

adopts this dual-track system.

Hong Kong launched the "Stablecoin Bill"

in May this year

, which will take effect on August 1. As

soon as this bill was launched,

the concept stocks of stablecoins went crazy,

at least 70%. It can be seen that the market

is very optimistic about the stablecoin market in Hong Kong

.

Of course, the stablecoin promoted by Hong Kong

is not the US dollar stablecoin, but

the Hong Kong dollar stablecoin.

At the same time, it is also planned to launch

a pilot of offshore RMB stablecoin.

The content and concept of this regulation

are actually similar to the one we just talked about in the United States.

Let's talk about some differences.

First of all, Hong Kong's approach

is called "sandbox"

, which is to conduct a pilot in an isolated and

fully controllable regulatory environment

. In July 2024, he

announced the licenses of three "Sandbox" participants.

These three can be said to be the first participants

in the Hong Kong stablecoin circle.

The licenses were obtained by

JD Coin Chain, Yuancoin Innovation

, and an alliance including Standard Chartered Bank.

JD Coin Chain is obviously JD's,

and the custodian bank behind it is called Tianxing Bank.

Who are the two major shareholders of Tianxing Bank?

Xiaomi and Futu.

The second Yuancoin Innovation is

mainly backed by some currency circle capital.

The third alliance

is mainly some Hong Kong capital.

Then there is another player who

is not a "Sandbox" participant yet,

but has been eyeing

to become the player who wants to win the next batch of licenses.

That is Ant Group.

So you see,

the Hong Kong Stablecoin Ordinance has not yet come into effect,

but the competition for this license has already begun.

Then Hong Kong has another feature, that

is, it will obviously pay more attention to cross-border payments.

For example, the Hong Kong

Economic and Trade Authority and the People's Bank of China

jointly launched the Cross-border Payment Pass,

which was just launched on June 22.

It roughly allows point-to-point direct connection

between the mainland and Hong Kong

without going through particularly complicated cross-border transactions

. In this way, the flow of funds can be smoother, and

the cross-border payment Although Futong

is not on the blockchain

, it also uses distributed ledger technology

and stablecoins. The compatibility of digital RMB is very high,

so the market generally believes

that it is

an important path to promote the internationalization

of RMB stablecoins in the future. The EU

passed

the MiCA regulatory bill for crypto assets in 2023.

The Singapore Financial Services Authority also

issued a regulatory framework for stablecoins in 2023.

These two countries issued formal regulatory regulations very

early

.

In general,

in order to facilitate everyone's understanding, I will simply classify

the attitudes of various countries towards stablecoins.

The first is the active and open type.

Typical examples include Singapore, Hong Kong, and the United Arab Emirates

. Especially the UAE,

which has always been at the forefront of the currency circle.

It feels that other places have to allow something

to be done,

but in the UAE, as long as it is not prohibited,

you can try

all the major currency companies.

You are welcome to come to my place to play

and build a company.

I almost don’t even collect taxes.

Hong Kong and Singapore

are both important global financial centers and trade centers.

They are still competing for the position of the top financial brother in Asia.

Naturally , no one wants

to lag behind in this new track

in the crypto world. The competition for stablecoins has begun.

Last month, Singapore's

Financial Services and Markets Act 2022

officially came into effect

, which clearly stipulates that

entities registered in Singapore

and

providing digital token services

to overseas customers must obtain a license before they can operate.

The second category,

I call it cautious and inclusive,

is mainly the United States and

the European Union. Although the EU introduced this regulatory bill early

, its attitude can be said to be very cautious

, even more cautious than the United States.

For example, its MiCA regulations

prohibit the collection of token redemption fees,

prohibit stablecoins from paying interest

, and strictly limit daily trading volume, etc.

The reason is that these stablecoins

will

pose risks to the smooth operation of the financial stability payment system, monetary policy transmission or monetary sovereignty.

In short, there are still many restrictions,

especially the prohibition on stablecoins paying interest, which

is quite harsh. Now many stablecoin platforms

have begun to target users to pay interest on

stablecoins ,

which is a bit like a deposit in the cryptocurrency world.

But if

the EU stipulates that stablecoins are not allowed to pay interest,

this will actually greatly reduce the attractiveness of stablecoins

. The subtext is that

if I don't ban it, you're good.

Don't give me those

pretentious things in the financial circle.

It can be seen Europeans' attitude towards stablecoins

is cautious but slightly repulsive and

conservative

. In fact,

South Korea

was also quite repulsive to cryptocurrencies

before 2021 , especially the Luna coin that collapsed in 2022,

whose headquarters is in South Korea.

This caused South Korean investors

to lose more than 4 billion US dollars.

After that, various legislations introduced by South Korea

tend to be strict.

Just don't let anything happen again.

Although the control is very strict

, South Korea's private cryptocurrency market

is still very hot,

especially the new president Lee Jae-myung.

You can clearly feel that he is relatively friendly

to stablecoins and digital assets

. In his campaign manifesto, he said that

the Korean won stablecoin is allowed.

South Korea also just

proposed the "Basic Act on Digital Assets" in June.

In fact, many countries are similar to South Korea

in their attitude towards stablecoins.

In the past year,

they have changed from cautious to acceptance

and even embrace

. Then the third category is clear restrictions.

The most typical one is mainland China.

In addition

, Bangladesh and Afghanistan are also. Let

me expand a little bit.

Although we are mainly talking about stablecoins today

, what each country wants to promote

is not only stablecoins

, but "tokenization"

, which involves

a very popular concept in blockchain recently called RWA

Real World Assets

literally means "real world assets".

Do n't be confused. It

's not complicated.

It's actually to

digitize some assets in the real world and

put them on the blockchain.

For example, if I have a house in the real world,

I can put it on the blockchain.

To build a corresponding

mapping asset,

an RWA,

you can put the debt issued by the enterprise on the chain,

you can put the intellectual property on the chain

, and it cannot be tampered with on the chain .

The transaction is also open and transparent

, and you can even hang some smart contracts, etc.

You see, this stablecoin

is actually a kind of RWA.

It puts the real-world US dollars

on the chain.

In March of this year, BlackRock

jointly

launched a US dollar money fund called BUIDL

on the chain with Securitize.

This is to put an investment fund on the chain.

You invest in it with stablecoins,

and then

you will get more stablecoins as a return regularly.

To be honest,

I also know

that there are many financial games on the blockchain,

and it is not uncommon to set up such an investment fund.

The key is that it is not an unknown company that

has issued a fund on the chain.

This is BlackRock,

the world's largest asset management company,

and the current scale of this fund

has reached 2.9 billion US dollars.

To be honest, I am still surprised that

a mainstream financial company

can enter the market so early,

so successfully, and

on such a large scale.

In China, Ant

is also actively researching and promoting RWA, and

is actively participating in

the Ensemble sandbox project in Hong Kong. It

has developed RWA for charging piles, RWA

for photovoltaic power plants, and

RWA for battery swap stations.

In this way,

these projects can be financed on the blockchain,

and everyone can invest in RWA

on the blockchain. RWA

is especially regarded by Hong Kong and Singapore

as a very promising field

in the crypto world.

Of course , it is also one of the main battlefields for stablecoins

. Stablecoins

are also developing rapidly.

For example,

OKX launched a product called OKX a while ago . The function of Pay

is that two people can use the APP

to scan the code of each other and

transfer money in real time,

just like Alipay

, but it transfers stablecoins . Then you

can put the balance of this stablecoin in your wallet

and manage it in your account

, just like Yu'ebao.

Then online payment giants such

as Paypal and Stripe

have also incorporated stablecoins

into their payment systems

.

In fact, you see

why major companies in various countries

have recently begun to join the stablecoin war

. I think

this is a global version of

"join if you can't beat it."

Most companies

and governments of most countries

may refuse

and resist at the beginning.

After all, most of them

are vested interests in the original market system.

But

when some of them gradually realize that this trend

seems to be irreversible in the short term,

what can they do if they can't beat it

? Then I will join

and rush to the front.

The more people turn around and rush to the stablecoin market,

the stronger the momentum will be.

In fact, facing this big trend,

everyone wants to fight for their own interests. Do

you think the United States

wants to use stablecoins

to strengthen its dollar status?

Yes. Do

other countries and regions

want

to seize a favorable position through stablecoins?

Yes. Does

Trump personally want to profit from cryptocurrencies?

Yes,

companies in the currency circle want to profit from cryptocurrencies. Does stablecoin

make money through cryptocurrency?

Yes, wait a minute.

Although everyone has different goals

, from the perspective of practice,

they are all promoting the stablecoin market

and promoting the improvement and development of the cryptocurrency market.

This is actually very similar to some hot spots.

For example, everyone is rushing to invest in AI

and robots.

However, the trend of stablecoins

also

involves the participation of

governments supervision

and central banks of various countries , right? It is a global melee.

As for the specific strategies

of various countries and the purpose of their legislation,

we have just made a brief analysis.

To

be honest, I think that most governments

have not figured it out . Don't think that

those who participate in the discussion of stablecoin legislation in various countries

are all cryptocurrency experts.

There are not so many experts.

How many

senators in the US Congress who are at least 50 years old

can truly understand stablecoins

and cryptocurrencies?

They have to vote on

this key stablecoin bill.

Most of them will take a step-by-step approach

. If stablecoins are used on a large scale,

what impact will it have on the existing financial system?

We say that

the rise of stablecoins

includes decentralized finance,

which essentially skips financial intermediaries and

payment companies.

There is a term called "financial disintermediation",

so banks are also nervous,

and payment companies are also nervous.

They can only rush to the front.

Jamie Dimon, the boss of JPMorgan Chase

In 2023, people still said that

Bitcoin was a big scam.

Recently, they have issued their own Morgan coins.

It is expected that by the end of 2025,

major European and American banks and financial technology companies

will have launched their own stablecoins.

In fact, you see,

regulators

require issuers of stablecoins to have 100% reserves.

In theory, a large part of this money

will flow back to the banking system,

so in theory,

the amount of money flowing out of the banking system should not be much,

but what is the problem?

It will lose a lot of flexible funds

and a lot of lending capabilities

, so its interests will definitely be greatly damaged.

At the same time,

it will also reduce the connection between banks and the entire economy.

The damage to the interests of the bank itself

may not matter to everyone,

but the weakening of its connection with the entire economy

is more troublesome,

because the central bank, the central

bank

, regulates monetary policy through the banking system .

The weakening of the connection

will lead to a reduction in the effectiveness of the central bank

's monetary policy. As for who will regulate monetary policy in the crypto world,

the circulation speed of stablecoins, and

the credit scale of stablecoins,

this is actually a bigger and more important issue.

In fact, regulators in various countries

are now deliberately avoiding this issue.

You see The United States

defines stablecoins as payment stablecoins,

which means that you mainly use them for payments,

and rarely use them for savings

investment

, or financing. It

's not just the United States.

We've seen that all countries are similar

, basically prohibiting

or extremely strictly restricting stablecoin payment interest rates

, not to mention lending.

You see, this is actually intentionally avoiding

the issue of stablecoin interest rates .

We can only take one step at a time.

Stablecoins

are really interesting.

I'm sure I don't have the ability to

talk about it thoroughly in just

one video , but I hope that through this content, everyone

can at least realize that it's not that simple.

It has caused a lot of serious collisions.

It has caused

collisions between different currencies

in different countries

, a collision between the traditional financial system and the encrypted trading system,

a collision between private companies and official regulatory agencies

and central banks

, and a collision between stability and innovation.

Although this innovation is very risky

, so many countries and regions

can embrace it so actively

. To be honest, I'm still very excited

and want to see

what kind of form this so-called Web3 world can develop

to subvert our cognition.