Core Insights - The total market value of stablecoins surpassed $250 billion as of June 2025, exceeding the combined transaction totals of Visa and Mastercard, positioning stablecoins as a core force in reshaping the global financial system [1] - Stablecoins are recognized as a significant financial innovation due to their payment efficiency, privacy protection, and low fees, leveraging blockchain technology to achieve market breakthroughs [1][4] - The future of stablecoins faces challenges, particularly regarding compliance scrutiny, which could erode their cost advantages [1][4] Payment Efficiency and Cost Advantages - Traditional SWIFT settlements incur approximately 5% fees and take several days, while stablecoin transactions can reduce fees to below 1% and settle within one to two hours, or even seconds [1] - The decentralized nature of stablecoins allows for peer-to-peer payments and immediate settlement, enhancing efficiency [2][4] Regulatory Challenges - Regulatory bodies in the EU, the US, and Hong Kong have introduced regulations that impose strict requirements on stablecoin issuance, circulation, and trading, including a 100% reserve requirement for issuers [4] - The decentralized characteristic of stablecoins poses challenges for regulators, as it can bypass traditional foreign exchange controls and disrupt central bank monetary policy transmission [4][5] Impact on International Monetary System - Experts suggest that stablecoins, particularly USD-pegged stablecoins, could distort monetary multipliers and policy transmission, potentially increasing volatility in US Treasury prices [5][6] - Stablecoins are unlikely to fundamentally alter the multi-polar development of the international monetary system, as they still rely on the credit of sovereign currencies [6] China's Strategy and Opportunities - China is leveraging its existing advantages in third-party payments and the digital yuan to promote the internationalization of the renminbi, while allowing private institutions to innovate in cross-border payments [6][8] - The development of a renminbi stablecoin could complement the digital yuan and expand its overseas usage, particularly by utilizing the market presence of major internet companies [8]