Express
CICC: WeChat Pay and Alipay's Platform Digital Currency Similar to RMB Stablecoin
Summary: In a recent report, CICC provided an economic analysis of stablecoins, stating that from the perspective of holders, stablecoins are private currencies, not government currencies. While digital technology enhances payment settlement efficiency, it lacks decentralization. From the issuer's perspective, the stablecoin model is similar to a narrow bank, not just a liability. The RMB already ...
In a recent report, CICC provided an economic analysis of stablecoins, stating that from the perspective of holders, stablecoins are private currencies, not government currencies. While digital technology enhances payment settlement efficiency, it lacks decentralization. From the issuer's perspective, the stablecoin model is similar to a narrow bank, not just a liability. The RMB already has stablecoins in the form of WeChat Pay and Alipay. From an economic mechanism standpoint, third-party payment platform currencies have similar functions to stablecoins. Currently, the user base for stablecoins in regular retail payments is small, with limited use cases. Third-party payment platforms like WeChat, Alipay, Apple Pay, and PayPal have already established network effects and economies of scale, giving incumbents a first-mover advantage. The growth potential of USD stablecoins is primarily due to the USD's international currency status, which can in turn promote dollarization. Using Hong Kong as a controlled experimental field for RMB stablecoins plays a positive role in balancing the potential for technological innovation with maintaining the public good nature of payments, financial stability, and national monetary sovereignty across multiple dimensions.
Tags:
Link: CICC: WeChat Pay and Alipay's Platform Digital Currency Similar to RMB Stablecoin [Copy]
