Expert: Whether stablecoins can be stable remains to be seen

Mars Finance News: Hu Zhihao, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences and deputy director of the National Laboratory of Finance and Development, wrote in the Economic Daily that in 2017, USDT, which was still in its early stages of development, was once questioned about the authenticity of its reserves, triggering a trust crisis. USDC, known for its "reserve transparency and high compliance," encountered a bank run in March 2023 due to part of its reserve assets being held at Silicon Valley Bank, which went bankrupt. If legal stablecoins are like this, let alone the various "death spirals" that algorithmic stablecoins have experienced. This forces us to take seriously that stablecoins with partial monetary functions must be subject to corresponding regulation due to their public goods nature. Currently, regarding the stablecoin trend, we should neither ignore it nor rush into it blindly. We should understand the essence of stablecoins, avoid risks, and focus on creating a good ecosystem that promotes the healthy development of the digital economy. (Jinshi)