Core Viewpoint - The recent legislative developments in the U.S. and Hong Kong regarding stablecoins, along with Circle's listing on the New York Stock Exchange, have reignited discussions on the impact and implications of stablecoins in both traditional and Web3 finance [2] Group 1: Types of Stablecoins - Fiat-collateralized stablecoins are integrated into sovereign credit systems, reflecting a historical evolution of currency from shells and precious metals to modern fiat currencies [3] - The emergence of various types of stablecoins, including fiat-collateralized, cryptocurrency-collateralized, commodity-collateralized, and algorithmic stablecoins, highlights the challenges faced by the latter three, with fiat-collateralized stablecoins being the focus of regulatory scrutiny [4] Group 2: Regulatory Trends - Global regulators have increasingly focused on fiat-collateralized stablecoins since the introduction of the EU's MiCA, emphasizing non-bank payment institution regulations, consumer protection, and compliance with financial market infrastructure principles [6][7] - The regulatory landscape aims to enhance monetary sovereignty in the Web3 space while balancing the trust and concerns surrounding fiat currency [7] Group 3: Challenges and Opportunities - Despite the potential for stablecoin legislation to create new opportunities, challenges remain, including the inability to effectively manage market volatility and liquidity shocks, as well as the complexities of cross-border payments [9][10] - The concept of a "chain-based Bretton Woods system" faces sustainability issues, as the inherent conflicts in providing liquidity and maintaining value stability may undermine its viability [10] Group 4: China's Strategy - China should focus on developing a fiat-collateralized stablecoin, particularly a renminbi stablecoin, to establish a presence in the global market, with regulatory frameworks and pilot programs in designated areas like the Shanghai Free Trade Zone [12][13] - Caution is advised regarding the issuance and holding of stablecoins domestically, with an emphasis on financial security and consumer protection while learning from international regulatory experiences [14]