Hu Zhihao, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences and deputy director of the National Laboratory of Finance and Development, stated in an article published in the Economic Daily that in 2017, the USDT, which was still in its early stages of development, was questioned about the authenticity of its reserves, leading to a crisis of trust. The US dollar coin (USDC), known for its "transparent reserves and strong compliance," experienced a run on the bank in March 2023 due to a portion of its reserve assets being held at Silicon Valley Bank, which went bankrupt. Even legal stablecoins are like this, let alone the various "death spirals" that algorithmic stablecoins have encountered. This makes us take it seriously that stablecoins with partial monetary functions must be subject to corresponding regulation due to their public goods attributes. At present, we cannot turn a blind eye to the trend of stablecoins, nor can we rush into it. We should recognize the essence of stablecoins, seek benefits and avoid harm, and focus on building a good ecosystem to promote the healthy development of the digital economy. (Economic Daily)
