At the Lujiazui Forum in Shanghai, former Governor of the People's Bank of China, Zhou Xiaochuan, raised concerns regarding USD-pegged stablecoins and their implications for dollarization.
Risks of Dollarization and Stablecoins
Zhou Xiaochuan emphasized that USD-pegged stablecoins may facilitate dollarization, raising concerns about potential negative economic impacts. He noted that unless countries face severe economic issues, dollarization could introduce significant adverse effects.
Impact on Global Economy
According to CoinMarketCap, Tether USDt (USDT) maintains a steady price at $1.00, with a market cap of $155.60 billion. Analysts suggest that if USD-pegged stablecoins continue to grow, it may lead to global financial realignments, necessitating careful monitoring of emerging markets considering digital currency issuance.
Conclusion
In conclusion, Zhou Xiaochuan's remarks at the Lujiazui Forum highlight the growing importance of monitoring stablecoins and the potential effects of dollarization on the global economy.
Zhou Xiaochuan's statements emphasize the need for increased vigilance regarding stablecoins and their impact on dollarization in the global economic landscape.
