💸Stablecoins: The 'New Favorite' of the Crypto World💸
What is a stablecoin?
A stablecoin is a type of cryptocurrency that maintains a relatively stable value by being pegged to a fiat currency or other assets.💰
Types of Stablecoins
Fiat-collateralized stablecoins: Such as USDT, USDC, stable in value but reliant on the credibility of the issuing organization.🏦
Crypto-collateralized stablecoins: Such as DAI, decentralized, not reliant on centralized institutions.🌐
Algorithmic stablecoins: Such as Ampleforth, theoretically completely decentralized, requiring no collateral.💡
Use Cases for Stablecoins
Cross-border payments: Fast, low-cost cross-border transfers.✈
Daily transactions: Suitable for everyday shopping and online payments.🛒
Financial transactions: Used as a medium of exchange to reduce price volatility risk.📊
Decentralized Finance (DeFi): Used for lending, trading, providing liquidity, and other financial activities.🏦
Supply chain finance: Improves transaction efficiency and transparency, reduces exchange rate risks.📦
Store of value: Provides a choice for asset preservation as a safe-haven asset.💼
How can ordinary people participate?
Invest in QDII funds: Indirectly participate in stock investments related to stablecoins.📈
Engage with HKD stablecoins: Exchange HKDST through licensed banks in Hong Kong for cross-border remittances or investments.🇭🇰
Recent Factors of Popularity
US passes the GENIUS Act: Stablecoins are included in the US national financial regulatory framework.🇺🇸
Implementation of Hong Kong's Stablecoin Regulation: Anyone issuing fiat stablecoins in Hong Kong must apply for a license from the Financial Commissioner.🇭🇰
Circle goes public in the US: Listed as the 'first stablecoin stock' on the NYSE, with soaring stock prices.📈
China promotes stablecoin development: The central bank governor Pan Gongsheng stated the promotion of central bank digital currency and stablecoin development.🇨🇳
Domestic companies accelerate layout: Ant Group, JD Coin Chain Technology, ZhongAn Bank, etc., are accelerating the layout of stablecoin licenses and businesses.🏢
Guotai Junan International obtains virtual asset trading license: Stock price skyrockets, becoming the first Hong Kong-based Chinese broker to provide comprehensive virtual asset trading services.📈
As the new favorite of the cryptocurrency market, stablecoins are gradually becoming a popular choice for investors.📈
ETH PEPE BTC
