#稳定币风险与合规 Upon seeing the news about Circle and Aleo working on privacy stablecoins, my first reaction is to be cautious. In the past two years, stablecoin projects have emerged one after another, each time claiming innovation, but what’s the result? Either it’s a Liquidity Trap or Compliance is still unresolved.

USDCx sounds very advanced—privacy protection, bank-level settlement, institutional funding scenarios. But this is exactly what I want to remind everyone: the more high-end the narrative, the more you should ask three questions. First, to what extent is privacy protection, and will regulators in various countries accept it? There is already a contradiction between the KYC Compliance standards in Europe and America and privacy; how do we strike that balance? Second, is the Liquidity real? Large funding scenarios sound good, but where is the user base? Third, in case of a problem, can you withdraw your funds quickly?

I have previously fallen into the trap of stablecoins. Those new concepts and mechanisms of coins do have arbitrage opportunities in the early stages, but once market sentiment changes and regulatory scrutiny tightens, liquidity evaporates instantly. In the end, it is always ordinary users who are left holding the bag.

Instead of chasing risky assets, it is better to hold onto the fundamentals. Choose stablecoins that have already established a viable business model and have a clear compliance path. New things are just for looking, don't rush to go All In. This is the secret to living longer.