Recently, countries have gradually increased their attention to stablecoins, even surpassing Bitcoin itself.
Entrepreneurs who previously had no exposure to cryptocurrencies are also asking me what stablecoins are, and everyone is contemplating what kind of impact this will have on the future.
Interestingly, a while ago, the chairman of Mega Financial Holding compared stablecoins to EasyCards, which sparked a lot of discussion.
So why has the volume of stablecoins recently surpassed that of Bitcoin?
I believe that the popularity of Bitcoin itself has not decreased; people are still paying attention to whether Bitcoin can continue to break new highs, as Bitcoin remains an important indicator in the cryptocurrency space.
However, Bitcoin does not have much 'practicality', primarily serving as an 'asset' and 'hedging tool' for investment purposes.
In contrast, stablecoins can better serve as a 'medium of exchange', with more diverse applications and developments.
With its characteristics pegged to fiat currency, volatility has decreased significantly, and it is more convenient for regulation, making it easier to be accepted by businesses, financial institutions, and governments.
The current application directions for stablecoins include:
Trading bridge: Stablecoins serve as a convenient 'intermediate currency', reducing transaction costs and volatility risks.
Cross-border payments and remittances: In the field of cross-border payments and remittances, stablecoins support fast and low-cost international transfers and remittances, especially in areas with poor banking coverage, providing immense convenience.
Combating hyperinflation: In countries with severe inflation, such as Argentina, Turkey, and Venezuela, stablecoins can provide the public with a relatively stable way to store value.
DeFi and application scenario support: Stablecoins are core assets in the decentralized finance (DeFi) ecosystem, commonly used for lending, liquidity mining, trading pairs, and other functions.
Especially in the payment sector, there are many possibilities that entrepreneurs around me want to understand in depth.
Of course, this also depends on the gradual advancement of the country's regulations and laws.
In Asia, places like Singapore and Japan established relevant regulations as early as 2023.
South Korea is expected to introduce legislation before 2026.
Taiwan has also entered the public hearing and draft formulation stage from policy announcements this year. Although it is still uncertain when it will be completed, the direction and attitude are very clear, and we are just waiting for the relevant regulations to be announced later.
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