Zhongjin: The advantages of stablecoins in the local payment scene are not as obvious compared to cross-border payment scenarios.

The report from Zhongjin Research Institute stated that compared to cross-border payment scenarios, the advantages of stablecoins are not very clear in the local payment scene. For example, domestic third-party payment platforms like WeChat and Alipay have strong network effects and economies of scale, giving incumbents a first-mover advantage. The convenience of internet wallets and the completeness of their infrastructure are difficult to replace; and traditional bank cards overseas, such as Apple Pay and PayPal, rely on their points/credit systems and have a strong user dependency, while card organizations/clearing networks like Visa/MasterCard are also efficient. In terms of convenience and security in payment, we believe that within the same currency zone, stablecoins do not necessarily have a clear advantage. Their potential for cost reduction and efficiency improvement still focuses more on cross-border payments. It's like a passenger arriving at the airport on a stablecoin "supersonic plane," but still needing to choose a taxi, use an electronic wallet, or bank card to complete the last mile.