According to ChainCatcher, Hu Zhihao, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences and deputy director of the National Financial and Development Laboratory, wrote in the Economic Daily that in 2017, USDT, which was still in its early stages of development, was questioned about the authenticity of its reserves, triggering a trust crisis. In March 2023, USDC, known for its "transparent reserves and strong compliance," experienced a bank run after part of its reserve assets were held at Silicon Valley Bank, which went bankrupt.
If this is the case for legal stablecoins, it is even more concerning for the various "death spirals" that algorithmic stablecoins have encountered. This compels us to take seriously the fact that stablecoins with partial monetary functions must be subject to corresponding regulation due to their public goods nature.
Currently, regarding the stablecoin trend, we should neither ignore it nor rush into it blindly. We should understand the nature of stablecoins, avoid risks, and focus on creating a good ecosystem that promotes the healthy development of the digital economy. (Jintian)
