In fact, stablecoins can demonstrate significant efficiency advantages in compliant use cases. For example:
A company in the Dubai Free Zone transfers USD to @Paxos through the local bank settlement network, immediately minting USDL @LiftDollar_USDL, then exchanging it for AliHKD @AlipayPlus on Curve @CurveFinance, and redeeming it for Hong Kong dollars on the same day at Ant Hong Kong or Futu @moomoosingapore. This entire process is completed within the same day, with costs amounting to just a fraction of a percent.
This pathway is not just "all talk and no action"; it is a compliant, efficient, and low-cost example of cross-border innovation. Stablecoins are not only tools for regulatory arbitrage but also serve as a genuine infrastructure that enhances market efficiency.
Recently, the mainland's high-level officials have been vigorously promoting the RMB/HKD stablecoin (in the context of the US-China rivalry), making Hong Kong a hotspot. However, I feel that it's more noise than substance.
The demands for stablecoins include: tax evasion, avoiding intermediary fees, evading sanctions, escaping the banking system, and avoiding fluctuations in domestic currency, etc.
Once these things are compliant, what advantages do compliant stablecoins have compared to traditional finance?
Even if the RMB/HKD stablecoin is developed, what advantages does it have over USDT/USDC?
If there are no special advantages and there are significant inherent disadvantages (like the dollar's brand and first-mover advantage), why would people use it?
4.67K
2
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.