CICC: Internet companies have advantages in stablecoin deployment

On July 15th, according to Jinshi Data, a CICC research report stated that we believe the popularization of stablecoins has limited impact on existing businesses such as WeChat Pay. Domestic third-party payment is essentially a "quasi-stablecoin" mechanism pegged to the RMB, relying on legal reserves to ensure currency stability, and the domestic fee rate is as low as a few thousandths, far better than the few percent of overseas platforms. Therefore, we believe that under the current efficient and low-cost mature third-party payment system, the necessity of independent blockchain stablecoin popularization in China is not high, so the impact on existing businesses is limited. On the other hand, internet companies related to cross-border payments are more actively deploying in the stablecoin field. We believe that internet companies have advantages in the deployment of stablecoins: 1) User scenarios: Companies such as Amazon have hundreds of millions of users and mature payment scenarios (such as cross-border e-commerce), which can quickly promote stablecoin applications; 2) Technical capabilities: Internet companies have technical R&D capabilities; 3) Ecological synergy: The closed loop of B-end (supply chain) + C-end (retail payment) can strengthen the network effect of stablecoins. [Deep Tide TechFlow]