The Davos consensus is emerging: payment-grade stablecoins are being defined as payment-grade cash instruments, and Circle's CEO has proposed a "new physics of money."

Stablecoins became a hot topic during the Davos Forum. Industry insiders generally believe that stablecoins have the potential to reshape the global payment system, but their potential risks should not be ignored. Jeremy Allaire, co-founder and CEO of Circle, stated that under the regulatory frameworks of the United States and the European Union, payment-type stablecoins are clearly defined as "cash instruments" used for payments and settlements; therefore, issuers are not allowed to pay interest to holders, a design he personally supports. Regarding the practice of some stablecoin projects subsidizing users in the form of "rewards," Jeremy Allaire believes that the banking industry's concerns about "drained deposits and credit drying up" are exaggerated, and points out that the rise of money market funds historically did not cause substantial damage to the banking credit system. Furthermore, Jeremy Allaire proposed the concept of "new monetary physics," arguing that stablecoins significantly improve the efficiency of capital flow and money turnover. He believes that in the future, society may only need a smaller monetary base to support large-scale economic activities, and he also predicts that in the next 3 to 5 years, billions of AI agents will participate in the operation of the economic system. (Caixin.com)