Recent studies have shown that stablecoins are emerging as a new type of financial infrastructure, sparking in-depth discussions about their potential impact. By analyzing the interest balance mechanisms among various parties in the stablecoin ecosystem, experts are assessing the profound effects they may have on financial markets and the global monetary system.

In this context, how China responds to this emerging trend has become a hot topic. Experts generally believe that seizing opportunities in the early stages of infrastructure development is crucial. For China, issuing offshore Renminbi stablecoins may be a priority strategy choice. However, it is worth noting that stablecoins are merely a means to promote the internationalization of the Renminbi. Whether the Renminbi can truly become a widely recognized international currency fundamentally depends on its legal foundation and functional value.

Despite the enormous potential of stablecoins, their inherent risks cannot be ignored. The main risks include: potential runs and liquidity issues; impacts on traditional bank deposits and possible financial disintermediation; and the chain reactions of price volatility on the market.

It is worth mentioning that compared to cross-border payments, the advantages of stablecoins in the local payment field are not prominent. Another trend worth noting is that the growth of the US dollar stablecoin share may pose certain resistance to the internationalization process of the renminbi. Currently, the global stablecoin market size has exceeded $260 billion, with over 95% pegged to the US dollar. If the US dollar dominates the stablecoin field, it may squeeze the share of the renminbi in cross-border payments, thereby affecting the internationalization process of the renminbi.

In the face of this complex situation, China needs to formulate comprehensive and flexible strategies, seizing the opportunities brought by stablecoins while also prudently addressing the challenges they may pose, in order to ensure the status of the Renminbi in the future international financial system.