Expert: Whether stablecoins will be stable remains to be seen

Hu Zhihao, a researcher at the Institute of Finance of the Academy of Social Sciences and deputy director of the National Laboratory of Finance and Development, said in an article published in the Economic Daily that in 2017, the USDT, which is still in its early development, caused a crisis of confidence due to doubts about the authenticity of its reserves. And the US dollar coin (USDC), known for its "transparent and strong compliance of reserves", suffered a run on the USDC in March 2023, as part of its reserve assets were deposited in Silicon Valley Bank, accompanied by the bankruptcy of Silicon Valley Bank. This is still the case with fiat stablecoins, not to mention the various "death spirals" that algorithmic stablecoins have encountered. This makes us have to take it seriously. Stablecoins with some monetary functions must be subject to corresponding supervision due to their public goods properties. At present, we can neither turn a blind eye to the craze of stablecoins, nor can we coax them We should recognize the essence of stablecoins, seek advantages and avoid disadvantages, and strive to create a good ecosystem that promotes the healthy development of the digital economy.