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Former Chinese Central Bank Governor Zhou Xiaochuan: Stablecoins May Trigger Speculation, Limited Advantage in Cross-Border Payments
Summary: According to Bloomberg, former central bank governor Zhou Xiaochuan warned in a closed-door meeting in mid-July that stablecoins may trigger speculation and disrupt financial stability. Zhou pointed out that stablecoins have limited advantages over China's existing retail payment systems in terms of cost, and claims of high traditional cross-border payment costs may be exaggerated. He ...
According to Bloomberg, former central bank governor Zhou Xiaochuan warned in a closed-door meeting in mid-July that stablecoins may trigger speculation and disrupt financial stability. Zhou pointed out that stablecoins have limited advantages over China's existing retail payment systems in terms of cost, and claims of high traditional cross-border payment costs may be exaggerated. He also noted that regulatory frameworks in the US, Hong Kong, and Singapore have not fully ensured that stablecoins should be fully backed by liquid assets, emphasizing the need to be vigilant against fraud and systemic risks caused by excessive use of stablecoins on speculative asset trading platforms.
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Link: Former Chinese Central Bank Governor Zhou Xiaochuan: Stablecoins May Trigger Speculation, Limited Advantage in Cross-Border Payments [Copy]
