CITIC Securities: Stable development of stablecoins can bridge the gap between centralized credit currencies and digital currencies in the medium to long term

China CITIC Securities stated that in recent years, more and more payments have fled from the centralized currency system dominated by the US dollar and sought refuge in digital payment systems such as Bitcoin. Stablecoins are a "dual sided" currency that combines centralized and digital currency features. The policy aimed at promoting the development of stablecoins needs to revolve around strengthening the stability mechanism of stablecoins: enhancing the market's "trust consensus" towards stablecoins. This is also the focus of recent stablecoin regulatory policies. Only by comparing the total scale of stablecoins and US dollar bonds at present, promoting the development of stablecoins, it is not possible to bring large-scale increase in holdings of US dollars and US bonds in the short term. In the medium to long term, the stable development of stablecoins can first allow fiat currencies (such as the US dollar) to ride the free ride of Bitcoin's market value expansion; Secondly, it can also coat fiat currencies with a digital layer of stablecoins, bridging the gap between centralized credit currencies and digital currencies.