Yesterday, when talking to friends about the prospects of stablecoins, I gave an example:

Back then, Zhang Lei from Hillhouse Capital, during research in Yiwu, found that all merchants' business cards had QQ numbers printed on them. They realized the social prospects of QQ and Tencent in China, and decisively invested in Tencent.

Now, Huatai Securities' research report shows that "in Yiwu, stablecoins have become an important tool for cross-border payments. Chainalysis estimates that the on-chain stablecoin flow in the Yiwu market will exceed 10 billion USD in 2023."

Today's stablecoins are like Tencent back then.

However, today there are news reports stating that when reporters went for a field visit, most merchants in Yiwu said they had not heard of stablecoins, and only a few merchants accepted stablecoin payments.

Regarding this news, my analysis is:

The sample size is insufficient; according to official data, Yiwu has over 75,000 operating entities. Relying solely on reporters' street and mall visits and verbal inquiries cannot ascertain whether there are over 3,000 merchants in Yiwu using stablecoins.

In 2020 alone, over 10,000 merchants in Yiwu had their cards frozen. Many e-commerce and foreign trade merchants have very high transaction volumes and are very sensitive to cash flow; once their cards are frozen, it is equivalent to a death sentence. Therefore, the demand for stablecoins objectively exists. $USDC