Core Viewpoint - Stablecoins are redefining the future of currency and are becoming essential components of the digital economy, bridging traditional finance and the crypto world [2][19]. Group 1: Understanding Stablecoins - Stablecoins emerged to address the volatility of cryptocurrencies, providing a stable medium of exchange and a unit of account [12][16]. - Different types of stablecoins exist, including collateralized and algorithmic stablecoins, each serving unique functions within the financial ecosystem [12][16]. Group 2: Historical Context - The introduction of Bitcoin in 2008 marked the beginning of decentralized value transfer, but its volatility limited practical use [6][9]. - Ethereum's launch in 2015 introduced smart contracts, enabling a programmable economy and leading to the rise of DeFi and NFTs, while highlighting the need for stability in the crypto market [11][12]. Group 3: The Rise of Real World Assets (RWA) - The integration of traditional assets like U.S. Treasury bonds and real estate into the crypto space through tokenization has provided stablecoins with diverse collateral options [14][15]. - Major stablecoins like USDC and USDT are now investing in short-term U.S. Treasury bonds, evolving into "yield-bearing stablecoins" [14][15]. Group 4: Current Role of Stablecoins - Stablecoins have evolved into critical infrastructure for the digital economy, facilitating transactions, providing liquidity for DeFi, and serving as a bridge between fiat and crypto [16][19]. - They are also promoting financial inclusion, particularly in cross-border payments and as tools against inflation in emerging markets [16][19]. Group 5: Challenges Ahead - Stablecoins face technical risks, including vulnerabilities in smart contracts and oracle systems, which could undermine their stability [18]. - Economic risks arise from the potential devaluation of collateral backing stablecoins, leading to trust issues and market instability [18]. - Regulatory challenges are significant, with varying global policies creating uncertainty for stablecoin issuers and users [18].