How do you view the differences in regulatory attitudes towards stablecoins in different regions around the world?

Author: Yue Xiaoyu Source: X, @yuexiaoyu111

The popularity of stablecoins is cooling down, and has the stablecoin legislation in Hong Kong also tightened? How should we view the differences in regulatory attitudes among various countries and regions globally?

1. First of all, from a macro perspective, the "arms race" for stablecoins has officially begun.

AI is a technology that enhances productivity, while Crypto is a technology that transforms production relationships. The technology that transforms production relationships has a deeper impact.

In particular, as the confrontation between different ideologies intensifies, the role of Crypto has been further amplified and is being used as a tool of resistance.

What cryptocurrency represents is the power of minting coins. The US dollar, through the use of stablecoins, has penetrated more countries and regions, solidifying its position; other fiat currencies, such as the Chinese yuan, also need to leverage cryptocurrency to achieve the globalization of offshore stablecoins.

2. In this arms race, different countries have different positions: the regulatory policies of the United States have a demonstration effect, while Hong Kong focuses more on how to respond.

The Biden administration rejected cryptocurrencies, and at that time, many countries, including China, were also influenced to adopt similar policies; however, after Trump took office, the attitude towards cryptocurrencies underwent a 180-degree shift, accelerating the push for related legislation.

Against this backdrop, many countries' policies are unable to adjust quickly, so they can only respond reluctantly. However, in this response, they maintain a very cautious attitude.

This explains why Hong Kong's regulation of stablecoins is stricter than that of the United States.

So overall, the United States is taking proactive steps, while other countries are mostly responding passively.

However, the trend is irreversible, and the adoption of stablecoins is accelerating, with US dollar stablecoins starting to penetrate various countries and regions.

The US dollar is considered the strongest fiat currency in the world, but it is difficult to obtain. However, the dollar stablecoin, which acts as a digital dollar, is very easy to acquire. With the help of blockchain technology, it can flow globally and can be accessed as long as there is a network, thus it is experiencing spontaneous growth.

3. From a micro perspective, the arms race among traditional financial institutions such as payment services has already begun.

Traditional payment institutions have business scenarios and merchant networks, while stablecoin payments can significantly reduce the cost and efficiency of cross-border payments. The two can be said to be a natural fit, so how could traditional payment institutions not be tempted?

Stablecoins are the ultimate weapon for cross-border payments!

Since stablecoin payments will eventually revolutionize the traditional payment system, it is better to join in as soon as possible. Without mentioning the first-mover advantage, at least we cannot be left behind by competitors.

This is why if you don't take action, competitors might do it first, ultimately putting you in a passive position, leading everyone to engage in a "race for stablecoin payments."

As a result, the stablecoin payment sector has been embraced by traditional payment institutions, leading to practical implementation and deployment.

4. Summary

Stablecoins and stablecoin payments are an irreversible trend, and the stablecoin arms race has already begun.

The positions of different countries are simply different; the United States is actively promoting the development of stablecoins, while other countries and regions are in a passive defensive stance, which ultimately leads to variations in the stringency of the final legislation.

From a micro perspective, the advantages of stablecoin payments have already been recognized by traditional payment institutions, which are rushing to enter the stablecoin arena.

Therefore, even if the popularity of stablecoins briefly cools down, this trend can still be seen continuing both macroscopically and microscopically.