Core Viewpoint - The article discusses the current state and future prospects of the stablecoin market, highlighting several misconceptions about stablecoins and their impact on global currencies and assets [1]. Misconception 1: Stablecoins Have Absolute Value Stability - Stablecoins are essentially credit extensions tied to underlying assets, meaning their value is not absolutely stable but relatively stable compared to more volatile assets. They can experience technical de-pegging risks and are influenced by the volatility of the assets they are pegged to [5][6]. Misconception 2: All Fiat Currencies Can Issue Stablecoins in Abundance - Not all fiat currencies can support the large-scale issuance of stablecoins. The development of stablecoins is contingent on the acceptance of the underlying fiat currency. The most widely recognized fiat stablecoins may lead to a "winner-takes-all" scenario [8]. Misconception 3: Dollar Stablecoins Undermine Dollar Credibility - The rapid growth of dollar stablecoins does not weaken the credibility of the dollar; rather, it enhances the dollar's status by expanding its functionality and reach. Dollar stablecoins can provide a hedge against currency depreciation in unstable economies [10]. Misconception 4: Dollar Stablecoins Are a Lifeline for U.S. Treasuries - The dollar stablecoin market can only slightly alleviate pressure on short-term U.S. Treasuries, as the short-term debt market is primarily influenced by the Federal Reserve. Dollar stablecoins do not significantly impact the long-term debt market [13][16]. Misconception 5: Dollar Stablecoins Will Significantly Increase Dollar Supply - While the issuance of dollar stablecoins may delegate some monetary authority from the Federal Reserve to issuing companies, it does not lead to a significant increase in the overall dollar supply. The Federal Reserve remains the main regulator of dollar liquidity [18]. Misconception 6: Stablecoins Will Rapidly Develop the RWA Market - Stablecoins primarily support the Real-World Assets (RWA) market at the transaction level, with the market's growth ultimately dependent on the quality of underlying assets. The RWA market is still in its early stages, with a projected total asset scale of approximately $15 billion by the end of 2024 [21].