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1. Overview of Stablecoin Data

In the past month (September 26, 2020 to October 25, 2020, the same below, data reports for the natural month will be provided from next month), the basic information of each stablecoin has undergone tremendous changes.

Source: MYKEY, CoinMarketCap, Coin Metrics

Source: MYKEY, CoinMarketCap, Coin Metrics

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

In the past month, Tether has issued 299 million USDT on the Ethereum chain. The circulation of USDC increased by 306 million, that of BUSD increased by 301 million, that of DAI increased by 25.6 million, and that of TUSD decreased by 194 million. The circulation of PAX, HUSD, and GUSD increased by 74.89 million, 96.12 million, and 510,000 respectively.

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Source: MYKEY, DeBank

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Source: MYKEY, DeBank

Source: MYKEY, Coin Metrics

Active addresses

Source: MYKEY, Coin Metrics

Last week, the average number of daily active addresses of major stablecoins increased by 6.55% from the previous week.

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

Compared with the previous month, the daily average number of transactions of major stablecoins increased by 11.83%.

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

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2. Stablecoins go out of Ethereum

About 70% of stablecoins still choose Ethereum as the main issuance platform, and except USDT chooses to issue on multiple chains, most stablecoins choose Ethereum as the only issuance platform. During the continuous congestion of Ethereum, in addition to the steady increase of USDT on Tron, stablecoins have also gradually left the Ethereum platform. USDC chose multiple smart contract platforms for deployment, while BUSD began to expand within its own ecology.

USDC has been deployed on Algorand/Solana

The Center alliance announced several cooperation information in September and October, announcing that it will deploy USDC assets on Algorand, Stellar, and Solana. Among them, the supply on Algorand and Solana has reached 7.18 million US dollars and 25 million US dollars respectively, and the USDC on Stellar will be issued in the first quarter of 2021.

BUSD continues to grow on BSC

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3. Stablecoins attract global regulatory attention

Back in 2019, stablecoins attracted the attention of global regulators. The concept of "global stablecoin" was first formally proposed in the "Global Stablecoin Assessment Report" of the G7 Stablecoin Working Group in October 2019. "Global" mainly refers to the stablecoin spanning multiple jurisdictions. The Bank for International Settlements also released a report on strengthening cross-border payments in July 2020, proposing that central bank digital currencies and global stablecoins could provide potential boosts for cross-border payments.

The rapid growth of stablecoins in 2020 has attracted the attention of global regulators. The European Commission, the G20 Group and the Financial Stability Committee, and the International Monetary Fund have successively issued regulatory reports on stablecoins.

European Commission Publishes Regulatory Framework for Cryptoassets and Stablecoins

The European Commission announced the final draft of the regulatory framework for encrypted assets on September 24. The report is 168 pages long and elaborates on the background of the proposal, the status quo of the development of encrypted assets, and regulatory recommendations for stablecoins.

Global Stablecoin"Global Stablecoin"Global Stablecoin"Global Stablecoin"stable currency"stable currency"framework to mitigate risks identified by the Financial Stability Board, in particular financial stability risks.

The plan still needs to be considered by the legislative counterparts of the European Commission, the European Parliament and the Council of the European Union.

G20 Group Joint Financial Stability Committee Releases Stablecoin Regulatory Report

Global Stablecoin"Global Stablecoin"Regulation, Oversight and Supervision of Arrangements report, making high-level recommendations for the regulation, oversight and oversight of Global Stablecoin (GSC) arrangements.

The FSB noted that so-called "stablecoins" are a specific class of crypto-assets that attempt to address the high volatility of "traditional" crypto-assets by linking their value to one or more other assets, such as sovereign currencies. Sexual issues, with the potential to improve the efficiency of financial service delivery, but at the same time may pose risks to financial stability, especially in the case of large-scale adoption. Stablecoins have the potential to improve payment efficiency and promote financial inclusion, but the use of "global stablecoins" (GSCs) could have huge implications for multinational justice.

The FSB was established after the G20 summit in 2009. It is officially commissioned by the G20 to provide observation reports and policy recommendations for the global financial system, and is sponsored and led by the Bank for International Settlements.

The Group of Twenty (G20) is working with the International Monetary Fund (IMF), the World Bank, and the Bank for International Settlements (BIS) to discuss the practical and technical complexity of global stablecoins, including design and interoperability, and Assess the potential and challenges of central bank digital currencies for cross-border payments. By the end of 2022, the G20 will work with the IMF, World Bank and BIS to complete a framework for regulating stablecoins and research on the design, technology and trials of central bank digital currencies (source).

IMF Releases Report: Central Bank Digital Currencies Have Potential, But They Can’t Solve All Problems

A report from the International Monetary Fund (IMF) on October 16 said that central bank digital currencies (CBDCs) may benefit countries that want more control over their monetary policies, but they will not solve all crises.

The IMF pointed out that new digital forms of money, including CBDC and global stable currency (GSC), have attracted regulatory attention. CBDC and GSC can reduce transaction costs through competition, broaden service channels through mobile devices, and promote financial inclusion. The cross-border use of digital currencies also poses risks and policy challenges. CBDC is not a panacea solution for countries with poor economies, it cannot save countries with high inflation or similar domestic problems.

The report finally concluded that CBDC has not yet qualitatively changed the global currency pattern, but it may intensify the effect of currency substitution and currency internationalization. However, if the GSC has the same unit of account as the existing currency, it may have monetary effects similar to CBDC, and at the same time have a potential threat to financial stability. And if there is a new GSC with an independent accounting unit (such as a new currency with a basket of currencies as a reserve), it can also provide better financial services, but it will have a more far-reaching impact on global currency and financial stability.