Controversies of Stablecoins and the Evolution of New Financial Infrastructures

Recently, the stablecoin sector has been heating up, sparking widespread discussions in the fintech and cryptocurrency industries. On one hand, some traditional fintech companies express skepticism about the practicality of stablecoins; on the other hand, many tech giants and financial institutions are actively positioning themselves in this field. This divergence not only reflects differing views on new technologies but also highlights the competition for dominance in the future of financial infrastructure.

Voices of Doubt

A co-founder of a fintech company valued at $6.2 billion publicly stated that he has not seen any cryptocurrency use case in 15 years that can truly solve real problems. He believes that stablecoins do not only fail to reduce costs in major currency payments, but instead increase additional fees due to on-chain transactions and fiat conversions, making them particularly unsuitable for large-scale B2B payments. The founder pointed out that the fintech company has achieved nearly instantaneous, low-cost cross-border payments through its proprietary banking network, and the advantages of stablecoins are not evident. He believes that stablecoins may have some applications in emerging markets, but overall they resemble a form of regulatory arbitrage rather than providing substantial benefits for end users and businesses.

Institutions Actively Deploying

At the same time, several tech giants and financial institutions are vigorously promoting their stablecoin businesses:

1. A certain payment giant invested over $1 billion to acquire related infrastructure companies and plans to promote stablecoin products in the US, UK, Europe, and other regions.

2. Major U.S. securities clearing institutions are pilot testing dollar-backed stablecoins, aiming to achieve a transition from T+2 to instant settlement.

3. A large European bank has launched a US dollar stablecoin compliant with MiCA regulations, issued on the Ethereum and Solana chains.

4. Chinese payment giants are applying for stablecoin issuance licenses in multiple jurisdictions, aiming to seize opportunities in places like Hong Kong.

Market Demand Explosion

Despite ongoing controversies, the demand for stablecoins in the market has shown explosive growth. Taking a certain Bitcoin sidechain project as an example, its recent activities attracted about 3,000 wallets to inject 1 billion USD in stablecoin funds within 30 minutes. Participants were even willing to pay transaction fees of up to 100,000 USD to ensure transaction speed. Although this phenomenon may be related to the institutional support behind the project, it also reflects the strong interest of the market in new financial instruments.

The Deeper Meaning of Stablecoins

The competition over stablecoins actually reflects the struggle for control over future financial infrastructure. From the skepticism of traditional fintech companies to the proactive positioning of major financial giants, stablecoins are gradually evolving from a controversial concept to a core infrastructure that could reshape the global payment system. This transformation concerns not only the development of cryptocurrencies but may also determine the direction of the next generation of financial systems.

As more and more institutions participate, innovation and regulation in the stablecoin sector will continue to deepen, and its position in the global financial system will become clearer. Whether taking a wait-and-see approach or actively embracing it, all parties need to closely monitor the developments in this field to seize the opportunities and challenges brought about by financial technology innovation.