New regulations on stablecoin supervision: What is the impact on the financial system?

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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.

CICC Interpretation of Stablecoins: Three Major Regulatory Models Established, On-chain US Dollar Accelerating Formation

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.

CICC Interpretation of Stablecoins: Three Major Regulatory Models Established, On-chain US Dollar Accelerates Formation

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.

China International Capital Corporation Interpretation of Stablecoins: Three Major Regulatory Models Established, On-Chain US Dollar Accelerates Formation

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

CICC Interpretation of Stablecoins: Three Major Regulatory Models Established, On-Chain US Dollar Accelerates Formation

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

China International Capital Corporation Interpretation of Stablecoins: Three Major Regulatory Models Established, On-chain US Dollar Accelerates Formation

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

China Gold Interpretation of Stablecoin: Three Major Regulatory Models Established, On-Chain US Dollar Accelerates Formation

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

Zhongjin Interpretation of Stablecoins: Three Major Regulatory Models Established, On-chain US Dollar Accelerating Formation

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

CICC Interpretation of Stablecoins: Three Major Regulatory Models Established, On-chain US Dollar Accelerates Formation

  1. Provide new ideas for currency internationalization.

CICC Interpretation of Stablecoins: Three Major Regulatory Models Established, On-Chain US Dollar Accelerating Formation

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.

CICC Interpretation of Stablecoins: Three Major Regulatory Models Established, On-chain USD Accelerates Formation

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MevHuntervip
· 07-18 08:02
Stability remains a key point.
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BlockchainFoodievip
· 07-18 07:27
Stablecoins need seasoning and balance
Reply0
SocialFiQueenvip
· 07-18 02:43
Regulation, whether good or bad, is a double-edged sword.
View OriginalReply0
MetaverseMigrantvip
· 07-15 08:43
The stricter the regulation, the better.
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GasFeeCryervip
· 07-15 08:42
The regulatory tightening is bullish for the market.
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NFT_Therapyvip
· 07-15 08:42
First review, then stabilize more appropriately.
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ImpermanentPhilosophervip
· 07-15 08:38
On-chain transactions carry risks.
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LightningLadyvip
· 07-15 08:32
Regulation is like an arrow on the string.
View OriginalReply0
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