Express
Expert: Stability of Stablecoins Still Needs to be Observed
Summary: According to Jinshi's report, Hu Zhihao, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences and deputy director of the National Financial and Development Laboratory, stated in an article in the Economic Daily that in 2017, USDT, which was still in its early stages of development, faced a trust crisis ...
According to Jinshi's report, Hu Zhihao, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences and deputy director of the National Financial and Development Laboratory, stated in an article in the Economic Daily that in 2017, USDT, which was still in its early stages of development, faced a trust crisis due to questions about the authenticity of its reserves. The USDC, known for its 'transparent reserves and strong compliance,' also faced a run on reserves in March 2023 when some of its reserve assets were held at Silicon Valley Bank, which went bankrupt. With even legal stablecoins facing challenges, let alone algorithmic stablecoins that have experienced various 'death spirals,' it is necessary to seriously regulate stablecoins with partial currency functions due to their public good attributes. In the current stablecoin frenzy, we must not turn a blind eye or rush in. We should understand the essence of stablecoins, seek benefits and avoid harm, and focus on creating a good ecosystem to promote the healthy development of the digital economy.
