Recently, the concept of stablecoins has become very popular, whether in A-shares, Hong Kong stocks, U.S. stocks, or the cryptocurrency market, related assets have shown a trend.
Today, while browsing social media, I accidentally saw a question: "With Alipay and WeChat already available, and transfers being very convenient, why do we still need stablecoins?"
Indeed, this is a question many people have. Today, Curious Mr. will answer it and also discuss the corresponding opportunities.
First of all, Alipay, WeChat, or other payment platforms are essentially 'electronic bookkeeping systems'; to put it simply, they are still based on the banking system. You complete the transfer by giving instructions to the bank through centralized platforms like Alipay and WeChat, and the bank then settles the transaction.
The current stablecoins (USDC, USDT) are based on blockchain networks, a decentralized system.
To put it more directly, centralized networks can perform rollbacks. For example, when Société Générale lost 4.9 billion euros due to a trader's misconduct, the bank later traced back the false transactions and adjusted the accounts to recover the losses. The bank's 'rollback' has absolute control.
Blockchain, on the other hand, is different. Blockchain data is immutable, and the flow of funds cannot be reverted. Transactions conducted through distributed ledgers, hash chain storage, and consensus mechanisms are irreversible.
Decentralization is one of its characteristics, and stablecoins also have a natural 'globalization' feature, allowing them to circulate in any blockchain-supported wallet worldwide, without centralized clearing institutions and systems, with transfer costs only one-tenth of traditional institutions.
In addition, stablecoin transfers have advantages such as real-time settlement, high transparency, and security.
Therefore, for traditional payment platforms or credit card giants, it can be said that the entire system has been disrupted, and a new era has arrived!
The core income of credit card giants like Visa and Mastercard comes from transaction fees, and the popularity of stablecoins will directly impact this model. The recent performance of their stock prices shows the market's concerns about traditional credit card companies.
For investment opportunities in U.S. stocks, besides closely following Circle, the stablecoin company, attention can also be given to retail giants like Walmart and Amazon. These companies issue their own stablecoins, saving billions of dollars in credit card fees each year, which is a tangible benefit.
Traditional payment giants are not without a way out; if they transform in time, they can issue their own stablecoins or provide services for exchanging stablecoins for fiat currencies, allowing them to continue to shine in this transformation.