Recently, I read an article by Wang Yongli, former Vice President of the Bank of China, which thoroughly explains the issue of stablecoin regulation. For those interested in digital currencies, it's really worth pondering these underlying logics.

Let’s start with a practical question: Why are stablecoins strictly restricted in certain regions?

The market landscape is already clear. US dollar stablecoins like USDT and USDC occupy more than 99% of the global market share. In this situation, launching a new fiat-backed stablecoin now would basically mean playing a supporting role to others. Once monetary sovereignty is lost, it’s very difficult to regain.

Now, let’s look at the choice of technological path. Mobile payments and digital fiat currency technology are already ahead, so why still pursue stablecoins? Digital fiat currencies can achieve real-time settlement, controllable privacy protection, and cross-border payments are gradually being opened up. This is the direction being prioritized at the national level, and the logic is clear.

There’s another even more critical issue—financial security. Stablecoins have extremely strong cross-border liquidity, making them hard to regulate. If they’re used for capital outflows or illegal activities, the consequences could be severe. Blocking this loophole is a necessary risk control measure.

So what does this mean for ordinary users?

In the short term, domestic stablecoin trading is indeed affected. But from another perspective, the pilot programs for digital fiat currency are accelerating, and in the future, there may be more convenient cross-border payment solutions.

In the long run, if digital fiat currency truly becomes internationalized, we’ll see scenarios with lower fees and faster transfers. But a word of caution: participating in overseas stablecoin trading still carries legal risks, and this must be kept in mind.

Wang Yongli’s suggestions are also worth noting: focus on the internationalization of digital fiat currency, and combine it with digital identity technology to form a differentiated advantage. At the same time, don’t be absent from the competition with overseas stablecoins.

In short, this is a long-term game about monetary sovereignty and technological direction. Stablecoins are just one piece of the puzzle; the real game has only just begun.