BlockBeats News, June 20th. Guotai Junan Securities Research recently released the report "Stablecoins: How They Reshape Global Currencies and Assets," which analyzed in detail the current development and prospects of the stablecoin market and its impact on major asset classes. The report also pointed out six major "misconceptions" about stablecoins, emphasizing that their value is not absolutely stable.
Misconception 1: The value of stablecoins is absolutely stable. The essence of stablecoins is the credit extension anchored to assets. Their value is subject to both technical de-pegging risks and fluctuations in the anchor assets. Therefore, the value of stablecoins is not absolutely stable but relatively stable.
Misconception 2: All fiat currencies can issue stablecoins in large quantities. Not all currencies can issue stablecoins in large quantities. The ultimate development of stablecoins pegged to different fiat currencies depends on the acceptance of the legal tender itself. The most widely trusted fiat currency stablecoins will see a "winner-takes-all" situation.
Misconception 3: USD stablecoins will weaken the USD's credit. The rapid development of USD stablecoins will not undermine the USD system but will further strengthen the USD's status because USD stablecoins broaden the functionality and scope of the USD. USD stablecoins may have a greater impact on the legal tender of other countries, especially those with significant exchange rate fluctuations.
Misconception 4: USD stablecoins are a "lifesaver" for US Treasury bonds. The USD stablecoin market can only slightly alleviate the pressure on short-term US debt, but the short-term debt market is ultimately led by the Federal Reserve. USD stablecoins cannot alleviate the pressure on long-term US debt. Overall, USD stablecoins have a minimal impact on the US bond market.
Misconception 5: USD stablecoins will significantly increase the supply of USD currency. The emergence of USD stablecoins will indeed partially transfer the USD issuance authority from the Federal Reserve to the issuing companies. However, as the main participant in the currency supply, the Federal Reserve can still control the overall USD liquidity. Similar to economies with fixed exchange rate systems, despite having multiple note-issuing banks, the monetary regulatory authority can still adjust the currency supply based on market conditions.
Misconception 6: Stablecoins will drive rapid development of the RWA market. The support of stablecoins for RWAs is more evident at the transaction level, and the development of the RWA market ultimately depends on the quality of the underlying assets. Currently, RWAs are still in the early stages of development, and the choice of path may exhibit characteristics of "credit priority" and "liquidity priority."
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