Zhongjin Report: Stablecoins are similar in function to third-party payment platforms, and Hong Kong may become a testing ground for the RMB stablecoin.

On June 27, Zhongjin released an economic analysis of stablecoins, which pointed out: From the holder's perspective, stablecoins are private currency, not government currency. Digital technology enhances payment settlement efficiency, but there is no Decentralization. From the issuer's perspective, the stablecoin model is similar to a "narrow bank", which is not just a liability. The Renminbi already has stablecoins: WeChat Pay and Alipay. From an economic mechanism perspective, the platform currencies of third-party payment tools have similar functions to stablecoins.

Currently, the user base for stablecoins in conventional retail payments is very small, and the application scenarios are limited. Third-party payment platforms like WeChat, Alipay, Apple Pay, and PayPal have already formed network effects and economies of scale, giving them an incumbent first-mover advantage. The growth potential of USD stablecoins primarily benefits from the international monetary status of the US dollar, which can in turn promote dollarization. Hong Kong serves as a controlled testing ground for RMB stablecoins and a corrective regulatory role, which is conducive to balancing the potential for technological innovation with maintaining the public good attributes of payments, financial stability, and national monetary sovereignty across multiple dimensions.