Recently, "stablecoins" have frequently topped the trending searches — some save 30% in fees using them for cross-border transfers, while others lost their savings overnight due to them. Meanwhile, Bitcoin has plummeted by 70%, and the pilot of digital RMB red envelopes has expanded to 20 cities… What are the differences among these three "electronic currencies"? Why is it said that stablecoins are the key for the next decade?
I. First, the conclusion: The three are fundamentally different; do not confuse them!
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 legal currency Relatively stable Private company Strictly regulated in China
Cryptocurrency (usually pegged to USD) (e.g., Tether)

In summary:

Bitcoin is "digital gold" (strong speculative attributes), digital RMB is "electronic version of RMB" (backed by the state), stablecoin is a "digital dollar voucher" (more used for cross-border transfers).
II. Bitcoin: The "gold" of the digital age, but don't spend it like money!
Bitcoin was created in 2009 and is the earliest cryptocurrency. Its core characteristics are:

  • Decentralization: Not issued by any country or bank, maintained by a global computer network.

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

But the problems are also obvious:

  1. Prices soar like a rocket: It’s common for prices to rise or fall by 20% in a single 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: Cannot trade or mine in China.

Practical applications:

  • Turkish people use Bitcoin to combat inflation (because their local currency depreciates too quickly).

  • Silicon Valley programmers choose to receive part of their salary in Bitcoin (holding long-term in anticipation of appreciation).
    III. Digital RMB: Your phone's "new version of red envelopes"
    Digital RMB (e-CNY) is a legal digital currency issued by the People's Bank of China, entirely equivalent to paper currency.

    Its advantages are too obvious:

    ✅ Free: Transfer with 0 fees (WeChat/Alipay may charge withdrawal fees).

    ✅ Instant transfer: Can pay offline (can scan QR codes 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 national currency, while Bitcoin is a virtual asset spontaneously created by the public.

    • The digital RMB in your wallet is always worth 1 yuan, but Bitcoin could halve in value overnight.
      IV. Stablecoin: 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 company reserves of USD).

      • Fast transfers: 100 times faster than SWIFT international remittances, with almost 0 fees.

      Why do we need it?

      For example:

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

      1. Sell dollars on a US exchange → exchange for USDT (1 minute).

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

      3. Family sells USDT on a domestic exchange → exchanges for RMB (1 minute).

      But risk warning:

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

      ⚠️ In 2022, a stablecoin company collapsed, and users' assets evaporated instantly (choosing a major platform like USDC is relatively safe).
      V. The real relationship map of the three
      Bitcoin (speculative asset)
      │
      │ (technically similar)
      │
      Stablecoin (payment tool) — Digital RMB (legal currency)
      （Pegged to USD）       （Pegged to RMB）


      Key conclusions：

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

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

      3. Cross-border remittance/trade settlement→ Stablecoin (but domestic users should use cautiously).
        VI. What will the future hold?
        Bitcoin：May exist long-term as "digital gold", but its volatility makes it unsuitable for the general public.

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

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

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