CITIC Construction Investment: In the medium to long term, stablecoins can bridge the divide between centralized fiat currencies and digital currencies

ChainCatcher news, according to Jinshi Data reports, CITIC Construction Investment stated that in recent years, an increasing number of payments are fleeing the dollar-dominated centralized monetary system, seeking refuge in digital payment systems (such as Bitcoin). Stablecoins are "dual-sided" currencies that combine features of both centralized and digital currencies.

Policies aimed at promoting the development of stablecoins need to focus on strengthening the stability mechanisms of stablecoins: enhancing the market's "trust consensus" in stablecoins. This is also the focal point of recent stablecoin regulatory policies. Looking at the current comparison of the total scale of stablecoins and U.S. Treasury bonds, promoting the development of stablecoins cannot lead to a large-scale influx of funds into the dollar and U.S. Treasury bonds in the short term.

From a medium to long-term perspective, the robust development of stablecoins can first allow fiat currencies (such as the dollar) to ride on the coattails of Bitcoin's market cap expansion; secondly, it can also allow fiat currencies to don a layer of stablecoin's digital attire, bridging the divide between centralized credit currencies and digital currencies.