In-depth analysis of stablecoins!
What is a stablecoin?
Cryptographic digital currency anchored to fiat currency or specific assets, used to reduce price volatility of digital currencies, facilitating payments and settlements, such as Bitcoin settlements.
Stability of currency value is guaranteed by reserve assets, generally pegged 1:1 with fiat currencies like USD, HKD, etc.
Supports cross-border payments, supply chain finance, and other scenarios.
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Why not settle cryptocurrencies directly with USD or other fiat currencies?
Because policies do not allow it, such as in China; additionally, they are not restricted by traditional financial networks like SWIFT, enabling 24/7 cross-border real-time settlements; hence, only stablecoins can be used for settlements.
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How do stablecoins make money?
In simple terms, it is about collecting people's fiat currency for secondary investment (assets with stable returns, such as U.S. Treasuries; because stablecoins are backed by an anchor asset, either the U.S. dollar or the euro, and the company is responsible for collecting users' fiat currency (USD, EUR), then issuing equivalent almost zero-cost stablecoins to users (the marginal cost of issuing coins is approximately zero). Theoretically, it is 1:1, and the issuing company does not profit. However, the fiat currency (USD) that the company retains will be invested, for example, Tether, the company behind USTD, invests money in U.S. Treasuries to earn interest! In fact, Tether is one of the top 20 buyers of U.S. Treasuries, purchasing more than many countries.
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Why is JD.com launching a stablecoin?
The core point, the strategic point, is to achieve global business.
Taking the salary remittance of Filipino employees working in Hong Kong as an example, small remittances through traditional payment institutions usually incur a handling fee of 1% to 2%, and the funds take about 2 to 3 days to arrive. According to World Bank data, if remitting to Africa, the arrival time takes at least 7 days, with costs as high as 6.3%. Even with the fastest interbank payment methods, funds take at least one day to arrive. However, stablecoins significantly shorten the arrival time of funds and have lower fees.
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Do stablecoins have investment value?
The core of stablecoins is the anchor asset behind them (such as USD, RMB).
They are not investment targets, but payment tools; stablecoins are primarily designed as payment tools with stable value.
#代币化 #加密货币"