Do you accept stablecoins for foreign trade in auto parts?

Stablecoins have been a hot topic in recent times, as they are not only related to global stock markets, economies, policies, and regulations, but also to foreign traders' remittances.

Especially in the United States, regulatory regulations related to stablecoins have recently been introduced. Making stablecoins more 'stable', but also easier to track and regulate.

There are two aspects of regulation worth mentioning here.

The first is to stabilize the currency. There must be reserves behind it, and the reserve assets must be 100% supported by high liquidity and low-risk assets (such as treasury bond and cash).

That is to say, there was no such restriction before, so the corresponding stablecoin company can use the real US dollars you exchange to buy high-risk stocks, foreign exchange, futures, etc. These high-risk financial products also have a probability of losing money, and once they lose money, stablecoins will face a currency exchange crisis.

TerraUSD, AEUR, Celsius Network, and other companies are precedents for stablecoin bankruptcies.

The second one is that the United States is seeking tracking and strong regulation of stablecoins. What does that mean?

For example, Zhang San has been sanctioned by the United States, which restricts him from using US dollars for transactions. However, due to the existence of stablecoins, before being regulated, Zhang San can use stablecoins to conduct transactions for you. Taking USDT stablecoin as an example, the essence behind it is blockchain, distributed. Zhang San can trade with stablecoins and then switch to paper dollars for consumption, thus avoiding supervision.

So, this bill from the United States effectively closes this loophole.

From this perspective, as long as you don't do anything bad, stablecoins being regulated is a good thing for most people. For those engaged in foreign trade, there is absolutely no need to worry.

In addition, in May, Hong Kong also passed the "Stablecoins Ordinance", which officially came into effect on August 1st, allowing companies to apply for licenses and issue stablecoins.

With stablecoins in Hong Kong, for most people, it provides an additional financial opportunity and tool.

The biggest highlight of the "stablecoin ratio" passed by the Hong Kong government this time is that it allows licensed institutions to issue stablecoins supported by Hong Kong dollars.

As we all know, the Hong Kong dollar and the US dollar adopt a fixed exchange rate, which means that the exchange rate is constant. 7.8 Hong Kong dollars is equal to 1 US dollar, so the exchange rate between the Hong Kong dollar stablecoin and the US dollar stablecoin is also constant.

So, Hong Kong dollar stablecoins can replace US dollar stablecoins, indirectly replacing the US dollar. The most important point here is that the issuance and use of Hong Kong dollar stablecoins are not controlled by the United States.

That is to say, Hong Kong has created a financial instrument that is pegged to the US dollar in value but can evade US regulation. It can be imagined that in some cases, if international trade cannot be settled in US dollars, it may be possible to settle in Hong Kong dollars and stablecoins.

So, do we accept stablecoins for foreign trade, auto parts foreign trade, going abroad, or doing export business? It's entirely up to the individual, you can choose to accept or not accept.