According to CoinMeta, IMF's First Vice President Dan Katz stated in a speech at the University of Cape Town that in the face of potential dollarization pressures, some countries might choose to encourage the development of local currency stablecoins. Taking South Africa as an example, the adoption of dollar stablecoins is currently limited, but the demand for rand stablecoins is even lower. Although it is still too early to draw definitive conclusions, this difference may indicate that users prefer dollar stablecoins, which offer greater liquidity and network effects and are widely accepted across different platforms and in cross-border transactions. Once local currency stablecoins operate on the same blockchain infrastructure as dollar stablecoins, conversions between the two will become on-chain transactions, which could potentially reduce the need for traditional financial intermediaries. Katz mentioned that local currency stablecoins could even accelerate the adoption of foreign currency stablecoins.