At the Davos Forum, stablecoins were recognized as having transformative potential in the global payment system but also carrying risks. Circle CEO Jeremy Allaire emphasized that payment stablecoins are defined under regulatory frameworks as cash instruments unsuitable for paying interest, supporting this design principle. He introduced the 'New Physics of Money' concept, where stablecoins increase capital flow efficiency, potentially reducing the monetary base needed to sustain economic activity, and forecasted significant AI involvement in economic operations within 3-5 years.

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