Former PBOC Governor Zhou Xiaochuan criticized the potential adoption of stablecoins in China, highlighting financial risks and dollarization concerns.
Zhou Xiaochuan's Views on Stablecoins
Zhou Xiaochuan, who led the People's Bank of China from 2002 to 2018, spoke at forums in Beijing and Shanghai, emphasizing that stablecoins pose a threat to the country's financial stability if not properly managed.
Financial Risks and Existing Payment Networks
According to Zhou, the introduction of stablecoins may incite instability in China's financial system, given the already efficient domestic payment networks such as Alipay and WeChat Pay, which provide necessary financial services to users.
PBOC's Position and Concerns Over Dollarization
The People's Bank of China, under current Governor Pan Gongsheng, also casts doubt on single-sovereign currency dominance. They affirm systemic financial risks that might arise from unchecked stablecoin growth. Zhou notes that this could severely damage existing e-payment platforms.
Zhou Xiaochuan's remarks highlight the need for a cautious approach to stablecoin adoption in China to prevent potential threats to the country's financial system.
