President of the Old China Central Bank Zhou Xiaochuanhe pointed out the risks that the use of stablecoin may cause in the financial system. Speaking at a seminar behind closed doors in July, Zhou’s lyrics were shared with the public with notes published by the Thinking Starter CF40 on Wednesday. Zhou’s explanations of the Chinese State Council’s Yuana Index stablecoin It came to the agenda when it was preparing to evaluate the roadmap.
Xiaochuan: Stablecoins are exaggerated
Between 2002-2018 China Central Bank Zhou, who served as the president, argued that the necessity of adding stablecoins to the existing financial system was exaggerated. According to him, only a limited number of financial services can benefit from tokens and decentralization. For this reason, the real demand should be objectively questioned.
Zhou in China and other Asian countries Payment infrastructuresHe underlined that it is already quite developed. Connected to the banking system QR Codes and NFC He stated that low -cost and fast transactions can be performed without decentralized solutions thanks to based mobile applications. In addition, the Central Bank digital currencies (CBDCs) have made significant progress in the country’s payment system. According to him, the current structure has already reached the highest level in terms of productivity.
Risk of reserve insufficiency and multiplier effect
Zhou, stablecoin exportersHe pointed out that the coin could print uncontrolled without having enough reserves and that the storage organizations may not provide the necessary inspections. He stressed that the risk of fraud and instability may increase due to lack of surveillance.
Stablecoins can have a multiplier effect with chain operations, even in exports supported by full reserve compared to the former president. Multi -layered use of Coins in credit, mortgage, trade and re -valuation processes can lead to a larger burden than the reserve can meet. Zhou, a possible escape scenario from the bankHe said he could cause losses several times the size of the export reserve. He added that the Genius law or Hong Kong regulations in the United States are insufficient to manage these risks.
China crypto currency Although it still prohibits trade and mining, it is interpreted as an response to developments in the US and the region. USAWhile encouraging the use of stablecoin to strengthen the global domination of the dollar, Japan And South Korea also make similar initiatives. However, Chinese regulators protect their cautious stance by sending stablecoin promotions and research seminars to local intermediary institutions.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
