Research institutions reveal six misconceptions about stablecoins: value is not absolutely stable, the status of the dollar may be further strengthened.

On June 20, Block Rhythm reported that a securities research institution recently published a report titled "Stablecoins: How They Reshape Global Currency and Assets," which provides a detailed analysis of the current status and future prospects of the stablecoin market and its impact on major asset classes. It also pointed out six "misunderstandings" regarding stablecoins, stating that their value is not absolutely stable.

Myth 1: The value of stablecoins is absolutely stable. Stablecoins are essentially a credit extension anchored to assets, and their value is subject to both technical de-pegging risks and fluctuations in the anchored assets. Therefore, the value of stablecoins is not absolutely stable, but relatively stable.

Myth 2: All fiat currencies can issue stablecoins in large quantities. Not all currencies can issue stablecoins in large quantities; the ultimate development of different fiat currency stablecoins depends on the acceptance of the fiat currency itself. The fiat currency stablecoin that gains the widest trust will experience a "winner takes all" situation.

Myth 3: Dollar stablecoins will weaken the credit of the US dollar. The rapid development of dollar stablecoins will not impact the dollar system but will further strengthen the position of the dollar, as dollar stablecoins broaden the functions and usage of the dollar. In contrast, dollar stablecoins have a greater impact on the fiat currencies of other countries, especially those with significant exchange rate fluctuations.

Myth 4: US Dollar stablecoins are a "lifeline" for US Treasuries. The US Dollar stablecoin market can only slightly alleviate the pressure on short-term US debt, but the short-term debt market is ultimately dominated by the Federal Reserve. US Dollar stablecoins cannot alleviate the pressure on long-term US debt either; overall, US Dollar stablecoins have a relatively small impact on the US Treasury market.

Myth 5: Dollar stablecoins will significantly increase the supply of dollars. The emergence of dollar stablecoins will indeed decentralize some of the issuance authority of dollars from the Federal Reserve to the issuing companies. However, the Federal Reserve, as the main participant in monetary supply, can still regulate the total liquidity of dollars. Just like in economies with a fixed exchange rate system, although there are multiple issuing banks, the monetary regulatory authority can still adjust the money supply based on market conditions.

Myth 6: Stablecoins will drive the rapid development of the RWA market. The support of stablecoins for RWA is more reflected in the trading aspect, and the development of the RWA market ultimately depends on the quality of the underlying assets. Currently, RWA is still in the early stages of development, and the path choices may exhibit characteristics of "credit first" and "liquidity first."