Potential Impact of Stablecoins on the Financial System

Stablecoins serve as a bridge between traditional finance and decentralized finance, and the establishment of their regulatory framework marks an important step for cryptocurrencies to integrate into the mainstream financial system. Recently, the United States and Hong Kong have successively passed stablecoin regulatory bills, filling the regulatory gap in this field and helping to standardize industry development.

In terms of scale, the current market value of stablecoins is approximately $230 billion, accounting for about 1% of onshore deposits in the United States. However, in terms of transaction volume, the annual transaction volume of mainstream stablecoins has exceeded $28 trillion, surpassing that of mainstream credit card organizations, highlighting their importance as a means of payment. With the improvement of regulatory frameworks, stablecoins are expected to play a greater role in international payments and other areas.

The main impact of stablecoins on the financial system includes:

1. Provide more efficient means of cross-border payment, but also bring challenges such as capital controls.

2. Full reserve requirements limit the credit creation function and have a limited impact on the money supply.

3. It may lead to disintermediation of bank deposits, but the short-term impact is controllable.

4. Become a buyer of U.S. Treasury bonds, affecting the transmission of monetary policy.

5. The price volatility of cryptocurrency assets may transmit to the financial markets.

6. It may impact the international monetary order, potentially strengthening the position of the US dollar while also promoting diversification.

7. Provide new ideas for currency internationalization.

Overall, the development of stablecoins brings both opportunities and challenges. The establishment of regulatory frameworks helps to mitigate risks and promote the standardization of the industry. However, continuous attention is still needed regarding its potential impact on financial stability, with timely policy optimization.