Economic Daily: There are instability risks behind stablecoins

On its first day of trading on the New York Stock Exchange, stablecoin issuer Circle's stock price surged 168%, igniting market enthusiasm. Stablecoins are pegged to the value of fiat currency, combining the transparency and liquidity of cryptocurrencies, making them an important payment medium in the cryptocurrency economy. Industry insiders believe that the listing of stablecoins marks an important step for cryptocurrencies to enter the mainstream financial system. In addition, regulatory measures around the world are gradually becoming clearer, further promoting the development of the stablecoin market. However, stablecoins still face a series of challenges and uncertainties, with the core issue being their high dependence on the liquidity and credit security of anchored assets. (Economic Daily)