Recently, "stablecoins" have frequently been trending — some people save 30% on fees by using it for cross-border transfers, while others lose their savings overnight due to it. Meanwhile, Bitcoin has plummeted 70%, and the pilot program for digital RMB has expanded to 20 cities... What are the differences between these three types of "electronic money"? Why is it said that stablecoins are key for the next decade?
One, let's state the conclusion first: The three are fundamentally different and should not be confused!
Type Essence Price Volatility Issuer Regulatory Attitude
Bitcoin Cryptocurrency Extremely High (roller coaster) Decentralized Network Trading prohibited in China

Digital RMB Legal digital currency Completely Stable People's Bank of China Strongly promoted by the state
(1:1 pegged to RMB)


Stablecoin Pegged to fiat currency Relatively Stable Private Companies Strictly regulated in China
Cryptocurrency (usually pegged to USD) (like Tether)

In summary:

Bitcoin is "digital gold" (high speculative attributes), digital RMB is "electronic version of RMB" (state-backed), and stablecoins are "digital dollar vouchers" (commonly used for cross-border transfers).
Two, Bitcoin: The "gold" of the digital age, but don’t spend it like money!
Bitcoin was born in 2009 and is the first cryptocurrency. Its core characteristics are:

  • Decentralization: No country or bank issues it, relying on a global computer network for maintenance.

  • Fixed total supply: Only 21 million coins, never to be increased (therefore referred to as "digital gold").

But the problems are also apparent:

  1. Price behaves like a rocket: It's common to see a 20% rise or fall in one day, making it unsuitable for daily grocery shopping.

  2. Slow transaction speed: Confirming a transfer may take up to 1 hour.

  3. China explicitly prohibits: Trading or mining is not allowed in China.

Practical applications:

  • Turkish people use Bitcoin to combat inflation (due to rapid devaluation of their currency).

  • Silicon Valley programmers choose to receive part of their salary in Bitcoin (holding long-term with optimism for appreciation).
    Three, Digital RMB: Your phone's "new version of red envelope"
    Digital RMB (e-CNY) is the legal digital currency issued by the People's Bank of China, fully equivalent to paper money.

    Its advantages are too obvious:

    ✅ Free: 0 transaction fee for transfers (WeChat/Alipay may charge withdrawal fees).

    ✅ Instant arrival: Can pay offline (can scan QR code without internet).

    ✅ Controllable anonymity: Protects privacy while allowing the state to combat money laundering.

    Pilot scenarios:

    • Supermarkets and subways in Shenzhen, Suzhou, etc., directly accept digital RMB.

    • When the government issues consumption vouchers, using digital RMB is safer (anti-counterfeiting).

    The essential difference from Bitcoin:

    • Digital RMB is the digitization of state currency, while Bitcoin is a voluntarily created virtual asset by the public.

    • The digital RMB in your wallet will always be worth 1 yuan, but Bitcoin may halve in value by tomorrow.
      Four, Stablecoins: The "Alipay balance" for cross-border transfers

      Stablecoins (like USDT, USDC) are a "compromise solution" that has gained popularity in recent years:

      • Pegged to USD: 1 USDT ≈ 1 USD (guaranteed by the company’s reserves in dollars).

      • Fast transfers: 100 times faster than SWIFT international remittance, with almost zero fees.

      Why do we need it?

      For example:

      You are working in the USA and want to send $10,000 to your family back home. The traditional method takes 3 days and has a fee of 300 yuan. But if you use USDT:

      1. Sell USD on an exchange in the USA → Convert to USDT (1 minute).

      2. Transfer to family’s wallet (10 seconds to arrive).

      3. Family sells USDT on an exchange back home → Converts to RMB (1 minute).

      But risk warning:

      ⚠️ Chinese users cannot directly buy or sell stablecoins (this is a violation).

      ⚠️ A stablecoin company collapsed in 2022, causing users' assets to evaporate instantly (choosing large platforms like USDC is relatively safe).
      Five, the real relationship map of the three parties
      Bitcoin (speculative asset)  
      │  
      │ (Technically related)  
      │  
      Stablecoins (payment tools) — Digital RMB (legal currency)  
      (Pegged to USD)       (Pegged to RMB)


      Key conclusions：

      1. Want to trade cryptocurrencies to get rich → Bitcoin (but 90% of people will lose money).

      2. Daily consumption/receiving salary → Digital RMB (backed by the state, safest).

      3. Cross-border remittance/foreign trade settlement→ Stablecoins (but domestic users should be cautious).
        Six, what will the future hold?
        Bitcoin：May long-term exist as "digital gold", but its volatility is not suitable for the general public.

      4. Digital RMB: May cover major consumer scenarios nationwide by 2025 (learn to use it quickly now).

      5. Stablecoins: May replace SWIFT in the international remittance field, but China will promote its own cross-border payment system (CIPS).