Stablecoins are Tokens pegged to fiat currency (basically the US dollar), essentially a set of standardized smart contracts. Stablecoins are not fiat currency, let alone CBDC (Central Bank Digital Currency).
The Trump administration clearly opposed CBDC, believing it would strengthen public power and damage individual freedom's integrity, while being friendly to stablecoin policies, considering stablecoins beneficial to enhancing and consolidating the US dollar's hegemonic status. The EU and China, however, support CBDC and are not friendly to stablecoin regulation.
Under the US stablecoin regulatory framework, stablecoin networks will be deeply integrated into the existing US dollar system. This will lead to an unprecedented fierce market competition in the stablecoin track. World Liberty Financial and Fidelity Fund have already entered the field.
Currently, the main functions of stablecoins include value storage, trading medium, and payment. The effectiveness of these functions is basically inherited from the anchored fiat currency. The characteristics of rapid confirmation and programmability make stablecoins far more efficient in cross-border circulation/clearing and settlement compared to the SWIFT system of fiat currencies. Now, the annual settlement scale of stablecoins is already twice that of the Visa payment network.
During the first wave of stablecoins in 2018-2019, project teams focused on licenses and asset sides, neglecting the liquidity network effect and user experience, resulting in almost all stablecoin projects failing except for USDC.
In this second wave, with the US stablecoin regulatory framework about to become clear, licenses are no longer the highest priority. Naturally, the priority of asset scale, liquidity network effect, and user experience has been raised.
Besides "chosen one" level stablecoin projects like World Liberty Financial's USD1 and Fidelity Fund's planned stablecoin, a large number of new stablecoin projects will emerge.
The investment opportunities this second wave of stablecoins offers to ordinary people are mainly two: one is YT Yield Farming of decentralized CDP stablecoin protocols, and the other is ambushing stablecoin infrastructure projects.
The former is relatively professional, while the latter is more straightforward. So, ambushing stablecoin infrastructure projects is more suitable for everyone.
Stablecoin infrastructure projects are divided into two categories: liquidity support projects like @CurveFinance and @Perena, and stablecoin new application scenario projects like @humafinance
