Express
Minsheng Securities: Stablecoins are not the answer to US debt
Summary: In response to recent news, Minsheng Securities released a research report stating that stablecoins are still not the answer to US debt. The US Senate passed the 'GENIUS' bill related to stablecoins, attempting to tie the US dollar and US debt to one of the biggest opponents of fiat currency in the decentralized digital currency ...
In response to recent news, Minsheng Securities released a research report stating that stablecoins are still not the answer to US debt. The US Senate passed the 'GENIUS' bill related to stablecoins, attempting to tie the US dollar and US debt to one of the biggest opponents of fiat currency in the decentralized digital currency era. It seems to be a case of 'if you can't beat them, join them': as the US dollar credit expands excessively, digital currencies rise, stablecoin demand increases, and the logical chain of increased demand for the US dollar and US debt seems to follow suit. The growth of stablecoin market value will mainly come from two aspects: speculation, investment, or hedging needs for digital assets; and the new demand for using stablecoins in international trade settlement. Recently in the US, multinational retail giants like Walmart and Amazon have begun considering issuing their own stablecoins, which can facilitate transactions and save billions of dollars in bank service costs annually. From these two perspectives, stablecoins are still not the answer to US debt.
