Hu Yuwei from CITIC Securities: There are three potential impacts on the reconstruction of the international financial system through stablecoins

At the CITIC Securities Stablecoins Forum, Hu Yuwei, Chief Analyst of CITIC Securities Policy Research, pointed out that stablecoins, combining the programmability of cryptocurrencies with the stability of fiat currencies, are essentially an "on chain money market fund" or a "payment tool with monetary functions," possessing five core characteristics: anchoring mechanism, price stability, liquidity and convertibility, openness and cross-border, security and risk. Stablecoins have a concentrated structure but diverse trends, with three characteristics: firstly, the market is focused on currencies pegged to the US dollar; Secondly, emerging currencies such as USDe have grown rapidly, with a growth rate of over 30 times since the beginning of 2024; Thirdly, USDC's strong compliance has enhanced its competitiveness in the regulatory market. Hu Yuwei pointed out that from the perspective of the international financial system, there are three potential impacts. In terms of trade payment systems, they have the advantages of faster speed and lower costs; In terms of the US treasury bond bond market, stabilizing the currency can play a role in expanding services; In terms of international monetary order, the narrative of "rising in the east and falling in the west" will continue to enhance the influence of emerging markets such as China. (Caixin News Agency)