China Securities has highlighted stablecoins as a 'dual-faceted' currency, merging the attributes of both centralized and digital systems. To foster their development, pertinent policies must prioritize the enhancement of their stability mechanisms, thereby solidifying market trust in stablecoins. This is the cornerstone of recent regulatory measures. When comparing the current aggregate size of stablecoins to that of the US dollar and US Treasury bonds, it becomes evident that short-term growth in stablecoins will not significantly divert capital towards these traditional assets. Nonetheless, in the medium to long term, the sustained development of stablecoins is poised to benefit centralized fiat currencies, such as the US dollar, by leveraging the expanding market capitalization of Bitcoin. Stablecoins will offer a digital avatar for these currencies, effectively bridging the divide between centralized fiat and digital currencies.