Key Insights for the Future Development of Stablecoins

The recent passage of the "GENIUS Act" by the U.S. Senate marks a new stage in the regulation of stablecoins. As a global payment giant, an executive from a certain payment company recently published an article expressing views on the future development of stablecoins.

The company believes that in order to achieve large-scale application of stablecoins, breakthroughs are needed in three areas: technology, reserves, and interface.

1. On a technical level, it is necessary to establish a strong and scalable infrastructure.
2. The reserve aspect needs to establish trust in the value of the stablecoin.
3. The interface layer needs to build a user-friendly interactive interface.

Currently, blockchain technology and compliance reserves have laid a foundation for the first two levels, but the interface layer still needs to be broken through.

The company stated that it will leverage its advantages in the payment sector to facilitate the large-scale adoption of stablecoins. By integrating payment infrastructure, services, and connections, it aims to provide global users with a seamless and secure digital payment experience.

For the application scenarios of stablecoins, the company believes they are mainly concentrated in emerging markets, including:

• Demand for US dollars in countries with high inflation
• Cross-border remittances and payments

In developed countries, due to the existing mature digital payment methods, the application of stablecoins still requires time.

Overall, the development of stablecoins is still in the early stages. As regulations gradually become clearer, there is hope for their application in more areas in the future. However, to achieve widespread adoption, time and joint efforts from all parties are still required.