Stablecoins: Annual Growth Exceeds 100%, Reshaping Global Monetary Landscape

·

The Rapid Ascent of Stablecoins and Their Promising Future

On June 25th, Huatai Securities released an in-depth macroeconomic research report highlighting the explosive growth of stablecoins. Since Bitcoin's inception in 2009, cryptocurrencies have evolved rapidly, giving rise to stablecoins that serve as mediators for crypto-asset transactions. Recent legislative advancements in the U.S. (GENIUS Act) and Hong Kong (Stablecoin Ordinance) have brought stablecoin development and regulation into sharp focus.

Key Developments:

👉 Why stablecoins are the future of finance

Factors Driving Stablecoin Adoption

  1. Technological Advancements: Distributed ledger technology and the rise of virtual economies.
  2. Efficiency: Superior cross-border payment speeds and lower costs compared to traditional systems.
  3. Accessibility: No bank account required, bypassing SWIFT in underbanked regions.
  4. Profitability: Issuers earn interest on reserve assets, boosting adoption incentives.

Regulatory clarity is critical to balancing efficiency with security, addressing risks like compliance and redemption transparency.


Stablecoins and Their Impact on Global Monetary Systems

Short-Term Dominance of USD Stablecoins

Credit Expansion Risks

Long-Term Vulnerabilities


Strategies for HKD and RMB Stablecoins to Compete

Hong Kong’s Path Forward:

Key to Success:


FAQ Section

Q1: What gives stablecoins their value stability?
A1: They’re pegged to reserves like fiat currencies or bonds, ensuring minimal price volatility.

Q2: How do stablecoins affect traditional banking?
A2: They bypass intermediaries, reducing costs but potentially disrupting deposit systems.

Q3: Can stablecoins replace national currencies?
A3: Not currently—they lack government backing but may complement monetary systems.

👉 Explore the latest in crypto innovation