The Development Path and Potential Challenges of Stablecoins Based on Risk Return Approach

In the context of the booming digital economy, stablecoins have attracted attention for maintaining relatively stable prices and playing a key role in the digital financial ecology. This paper focuses on the research of stablecoins. The background is that stablecoins are rising due to their stability and payment convenience, but they are subject to regulatory attention due to their impact on the financial system and monetary policy. The research topics cover the risks and advantages of stablecoins, as well as the comparison with central bank digital currencies. In terms of research methods, the risks (such as sovereignty, regulatory risks, etc.) and advantages (high stability, promoting financial inclusion, etc.) of stablecoins were analyzed through literature review, and cases (such as the choice of stablecoins and digital currencies in the United States) were analyzed, and the comparison between stablecoins and central bank digital currencies was made. The conclusion shows that stablecoins have significant value in digital asset trading and other fields, and have the advantages of financial inclusion. However, they face risks such as sovereignty and regulation, and there are challenges in technological innovation and application. Therefore, it is necessary to tap the advantages and build an appropriate regulatory framework and technical system to balance innovation and risk, so as to achieve stable development and promote the advancement of digital finance. Policy suggestions, such as building a multi-level regulatory system, are also put forward to refine differentiated regulatory measures.