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?
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