CICC Insight

Stablecoins represent a new type of payment technology and model, which may have positive spillover effects that are not clearly visible at present, and completely denying them is not the optimal choice.

Stablecoins are a type of cryptocurrency that is pegged to a specific asset (usually fiat currency), serving as a bridge between decentralized financial systems (DeFi) and traditional financial systems, and are an important infrastructure for DeFi. Recently, the United States and Hong Kong have successively passed stablecoin regulatory bills following the European Union, marking the formal establishment of regulatory frameworks for stablecoins in some major regions worldwide. While decentralized finance is ushering in development opportunities, it may also deepen the integration with traditional financial systems, posing new challenges and risks to the global financial system. We attempt to analyze the potential impacts.

After the launch of central bank digital currency, the forms of financial services provided by financial institutions may change, including the transformation of infrastructure and service channels by financial institutions, as well as the reshaping of business processes such as payment, deposit and loan, wealth management, and risk control.