Recently, stablecoins have continued to attract attention in the cryptocurrency market. Hu Zhihao, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences, pointed out in a recently published article that although stablecoins possess some monetary functions, their potential risks cannot be ignored.

Hu Zhihao mentioned that as early as 2017, USDT triggered a trust crisis due to its reserve authenticity issues. Even USDC, known for its transparency and compliance, faced a run risk in March 2023 due to the Silicon Valley Bank incident. In contrast, the risks of algorithmic stablecoins are even more evident.

These events highlight the necessity of regulating stablecoins. As financial instruments with public good attributes, stablecoins need to be subject to appropriate regulations to ensure their safety and stability.

However, Hu Zhihao emphasized that in the face of the stablecoin boom, we must neither ignore it nor blindly follow the trend. The key lies in deeply understanding the essence of stablecoins, weighing the pros and cons, and creating a good ecological environment to promote the healthy development of the digital economy.

With the rapid development of the digital economy, stablecoins have become increasingly important as a bridge connecting traditional finance and the encryption world. At the same time, finding a balance between innovation and regulation has become a crucial issue for decision-makers. In the future, establishing a moderate and effective regulatory framework will be key to ensuring the healthy development of the stablecoin market.