Hong Hao: The scale of stablecoins will soon exceed one trillion US dollars
well-known economist Hong Hao recently shared his latest views on the topic "Stablecoin: Just a Fad or a Real Game Changer?" in an online dialogue. Hong Hao believes that most stablecoins issued in Hong Kong will be based on the Hong Kong dollar, rather than U.S. Treasury bonds. In addition, the Hong Kong Monetary Authority has a very large foreign exchange reserve, so stablecoins in Hong Kong may be more stable than those in the U.S. The current stablecoin market is still very small, only $250 billion. He predicts that with more and more participants joining, it will soon exceed trillions of dollars. In theory, the issuance of stablecoins will indeed increase the demand for U.S. Treasury bonds, as there are now multiple participants in the market that can issue stablecoins based on U.S. Treasury bonds. However, Hong Hao predicts that in the future, the true demand for U.S. Treasury bonds will depend on the fiscal stability of the U.S. government. In addition, he pointed out that in order to facilitate more trading between foreign participants and China, stablecoins are one of the better ways to solve the cost and speed issues of cross-border transactions. However, for Chinese regulatory agencies, stablecoins also mean the decentralization of payment systems, which may pose a challenge to existing regulatory frameworks. Nevertheless, he said, "The stablecoin craze has begun, and the position of stablecoin technology in daily life will become increasingly prominent, which will be a trend."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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