Stablecoin Is a Speculative Tool that Threatens Financial Stability: Chinese Central Bank

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A senior official from the People’s Bank of China (PBOC) has indicated that the authority holds a dim view of stablecoin digital currencies that are linked to more reliable types of underlying assets, and that it has already adopted measures to address the risks they pose.

At a State Council press conference held on 8 July, Fan Yifei (范一飞), PBOC deputy-governor, said that stablecoins are source of danger for the Chinese financial system.

“[Stablecoins] have already become speculative instruments, and are also subject to the potential risk of threatening financial security and social stability.”

Fan Yifei also highlighted the dangers posed by stablecoins to the operation of the global financial system.

“[Stablecoins] have also become payments tools for certain money-laundering and illegal economic activities,” he said.

“The so-called stablecoins of some commercial institutions, in particular global stablecoins, could potentially bring risks and challenges to the international monetary system and payments and settlements system.

“We are quite concerned about these problems, and we have adopted a range of measures.”

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