Hong Hao: The scale of stablecoins will soon exceed one trillion US dollars.

[洪灏：The scale of stablecoins will soon exceed one trillion dollars] Renowned economist Hong Hao recently shared his latest views on the topic "Stablecoins: Just a passing trend or a true game changer?" in an online dialogue. Hong Hao believes that most stablecoins issued in Hong Kong will be based on the Hong Kong dollar rather than U.S. Treasury bonds. Furthermore, the Hong Kong Monetary Authority has a very large foreign exchange reserve, so the stablecoins in Hong Kong may be more stable than those in the U.S. Currently, the stablecoin market is still very small, only at $250 billion. He expects that as more participants join, it will soon exceed $1 trillion. Theoretically, the issuance of stablecoins will indeed increase the demand for U.S. Treasury bonds, as there are now multiple participants in the market that can issue stablecoins based on U.S. Treasury bonds. However, Hong Hao anticipates that the true demand for U.S. Treasury bonds in the future will depend on the fiscal stability of the U.S. government. Additionally, he pointed out that in order to facilitate more foreign participants in trading with China, stablecoins are one of the better ways to address the issues of cross-border transaction costs and speed. But for regulatory agencies in China, stablecoins also represent the decentralization of payment systems, which could challenge the existing regulatory framework. Nonetheless, he said, "The craze for stablecoins has already begun, and the role of stablecoin technology in daily life will become increasingly prominent; this will be a trend."