Group 1 - The core argument emphasizes that the international status of the Renminbi (RMB) determines the strategic space for China's stablecoin, rather than technology alone [1][3] - Blockchain technology is viewed as a tool that cannot create currency credit on its own; stablecoins are a digital extension of sovereign credit [1][2] - The essence of Real World Assets (RWA) is the digital representation of asset credit, not the creation of credit through tokenization [2][3] Group 2 - The article discusses the evolution of blockchain from a utopian ideal to a pragmatic tool in finance, highlighting its role in reducing trust costs and improving collaboration efficiency [4][5] - It identifies the need for a balanced blockchain architecture that combines centralized efficiency with decentralized trust [6][11] - The future of stablecoins is framed as a digital battleground for sovereign currency dominance, with the U.S. aiming to establish a "digital dollar hegemony" through regulatory frameworks [12][16] Group 3 - Stablecoins are categorized into three types: fiat-collateralized, crypto-collateralized, and algorithmic stablecoins, each facing unique challenges and market dynamics [12][13][14] - The article notes that the market for stablecoins is projected to grow significantly, driven by speculative trading rather than everyday payment use [15][19] - The potential for RWA to bridge the gap between real-world assets and blockchain technology is emphasized, marking a shift towards the digitization of tangible assets [21][23] Group 4 - The challenges facing RWA include legal ambiguities, cross-jurisdictional conflicts, and high compliance costs, which hinder its widespread adoption [27][28][29] - The article concludes that the integration of stablecoins and RWA is essential for the development of a sustainable Web3 economy, where both elements work together to enhance capital allocation and financial inclusivity [30][31]

Group 1 - The "Big and Beautiful" Act is projected to increase the US deficit by $3.4 trillion over the next decade, potentially resulting in 10 million Americans losing health insurance [1] - The Act extends the tax cuts from the Tax Cuts and Jobs Act and raises the US debt ceiling by $5 trillion, indicating a significant increase in government debt [1] - Fitch Ratings has downgraded the outlook for 25% of US industries to "deteriorating," which is a sign of potential economic recession [1][2] Group 2 - The "Genius Act" aims to support the US debt market by mandating stablecoin issuers to purchase short-term US Treasury bonds, creating a closed loop of "dollar-stablecoin-Treasuries" [2] - The global stablecoin market is expected to exceed $2 trillion by 2030, with a significant portion potentially backing short-term US Treasuries, which could help absorb the increased US debt [2][4] - The "Big and Beautiful" Act's strategy of increasing tariffs while reducing taxes aims to attract foreign investment and stimulate economic growth, but faces significant internal contradictions [2][3] Group 3 - The US federal debt-to-GDP ratio is expected to rise from 123% in 2024 to at least 132%, raising concerns about the sustainability of US debt [3] - The timing of tax increases and decreases creates structural contradictions, as external tax revenues have not materialized while internal tax cuts and spending increases are immediate [3] - The Act's tax cuts disproportionately benefit corporations and the wealthy, potentially exacerbating social divides and undermining economic growth [3][4]

Core Insights - The signing of the "Genius Act" and the upcoming implementation of the "Stablecoin Regulation" in Hong Kong signify a global "window period" for stablecoins, as the U.S. pushes for legislation to solidify the dollar's dominance in the global monetary system [1][6]. Group 1: U.S. Stablecoin Legislation - The U.S. has rapidly pushed through stablecoin legislation aimed at consolidating and enhancing the dollar's position in the global monetary system, extending its digital hegemony [6][7]. - Stablecoins tied to the dollar or U.S. Treasury bonds account for 99% of the market, highlighting their significant role in the financial landscape [6][7]. - The legislation will provide a regulatory framework for dollar stablecoins, attracting more institutional and technological innovation, thereby reinforcing U.S. leadership in the global crypto market [6][7]. Group 2: Structural Deficiencies of Stablecoins - Stablecoins face three major structural deficiencies that hinder their ability to serve as a pillar of the monetary system: lack of sovereign credit backing, trust barriers among different issuers, and inflexible asset-liability management [2][10][11]. - The reliance on reserve assets for stability raises concerns about their robustness, liquidity, and transparency, as well as the issuer's ability to maintain a 1:1 redemption promise under various market conditions [2][12][13]. Group 3: Risks and Market Dynamics - The expansion of dollar stablecoins has raised alarms among major central banks, with concerns about potential threats to monetary sovereignty and risks of capital flight in emerging markets [10][17]. - The model of stablecoin issuance linked to U.S. Treasury investments creates a closed loop that ensures the dollar's dominance in digital asset trading while providing a global funding pool for U.S. debt [7][8]. - The collapse of algorithmic stablecoins like UST serves as a stark reminder of the inherent risks associated with stablecoins, which are not equivalent to risk-free traditional currencies [14][16]. Group 4: Hong Kong's Regulatory Approach - Hong Kong is proactively establishing itself in the stablecoin regulatory landscape, aiming to leverage its position as a major offshore RMB trading center and enhance its financial infrastructure [17][19]. - The introduction of a stablecoin issuance sandbox and the passage of the "Stablecoin Regulation" provide a clear legal framework, reducing uncertainty for market participants and attracting major banks and enterprises [19][20].

Core Viewpoint - Stablecoins are emerging as an unexpected ally in reinforcing the dominance of the US dollar amidst global de-dollarization discussions, with significant implications for international finance and economic sovereignty in Europe [1][13]. Group 1: Stablecoin Market Dynamics - The total value of stablecoins in circulation has surpassed $200 billion, with monthly transaction volumes reaching several hundred billion dollars, providing a digital alternative to traditional currencies [2]. - Deutsche Bank's research indicates that stablecoins have evolved from niche tools to mainstream financial infrastructure, with the market size projected to grow from $20 billion in 2020 to $246 billion by May 2025 [6]. - The transaction volume of stablecoins has increased by 598% since 2020, with 2024 projections estimating $27.6 trillion in transactions, surpassing traditional payment giants like Visa and Mastercard [8]. Group 2: European Concerns - The widespread adoption of dollar-pegged stablecoins in Europe poses a threat to the European Central Bank's ability to manage the eurozone economy, potentially undermining monetary policy effectiveness [2]. - Concerns arise regarding financial stability risks, as European businesses and households earning in euros but transacting in dollar stablecoins may face currency mismatches if the euro depreciates [2]. - The limited market share of euro-pegged stablecoins, which account for only 0.24% of the total stablecoin market, results in higher transaction costs and reduced liquidity [3]. Group 3: Regulatory Environment and Adoption - The regulatory landscape for stablecoins differs significantly between the EU and the US, with the EU's MiCA regulations imposing strict controls, while the US lacks comprehensive legislation, fostering innovation and expansion [5]. - Major companies like Visa, Shopify, Gucci, and PayPal are increasingly adopting stablecoins for transactions, indicating a shift towards mainstream acceptance [10][11]. - A Visa survey revealed that users prefer stablecoins over traditional banking due to higher yields (45%), greater efficiency (41%), and lower intervention risks (39%) [11]. Group 4: Strategic Asset and Dollar Dominance - Stablecoins are becoming strategic assets, with 83% pegged to the US dollar, and Tether being one of the largest holders of US Treasury securities [12][14]. - The demand for reserve assets is evident, with Tether's reserves projected to grow significantly, reinforcing the dollar's position in the global economy [14]. - The potential passage of the GENIUS Act could lead to a tenfold increase in stablecoin supply by 2028, further entrenching the dollar's dominance in the foreign exchange market [15].