Group 1: Stablecoin Functions - Stablecoins have partially achieved the three main functions of money: medium of exchange, unit of account, and store of value in the crypto ecosystem[2] - In the real world, stablecoins have realized the functions of unit of account and store of value, but their use as a medium of exchange is limited due to regulatory barriers[2] - Stablecoins are designed to maintain value stability by being pegged to fiat currencies or assets, providing a hedge against inflation[7] Group 2: Market Growth and Projections - The stablecoin market has grown from $5 billion in 2020 to an estimated $250 billion by 2025, with total transaction volume exceeding $35 trillion in the past year[48] - Short-term growth of stablecoins is expected to remain steady, but they are unlikely to challenge sovereign currencies due to regulatory constraints and the relatively small size of the blockchain financial market[49] - Long-term potential exists for stablecoins to disrupt sovereign currencies, especially as the Real World Asset (RWA) market expands, potentially reaching trillions of dollars[50] Group 3: Risks and Limitations - Stablecoins face risks related to regulatory compliance and cross-border circulation, which could hinder their growth and acceptance[55] - The lack of sovereign backing and legal tender status means stablecoins rely heavily on the issuing entity's creditworthiness, posing systemic risks if confidence is lost[43] - Current stablecoins are primarily used within specific crypto ecosystems and have not yet integrated into mainstream payment systems, limiting their overall utility[28]