The People’s Bank of China (PBC) considers the stablecoin market a threat to financial systems.
While large payment companies like Visa see stablecoins as a single way to make money transactions more accessible and convenient for customers worldwide, PBC officials regard them as one of the biggest risks to global financial institutions.
Fan Yifei, one of the PBC’s spokesmen, shared this viewpoint. He claims that participants in the crypto business, such as Tether (USDT) and others, pose a threat to the world’s settlement and financial institutions. He also stated that the bank is concerned about the rapid development of private payment systems. The PBC, on the other hand, aims to decrease the industry’s potential monopoly to zero by combating haphazard capital rises.
Stablecoins, according to Fan Yifei, pose a risk to the international monetary system because the Chinese government has already taken steps to curb the growth of global tokens in the country. He claims that a more stringent policy would be implemented for worldwide enterprises that sell stablecoins and local businesses. As an example, he referenced Ant Group Alibaba.
Remember that Ant Group Alibaba’s IPO for over 37 billion dollars was halted in November 2020, prompting an antitrust inquiry.
Fan Yifei, speaking on behalf of PBC, slammed Bitcoin and other digital currencies, calling them “speculative instruments” and “assets” that jeopardize residents’ financial security and social stability.
Meanwhile, the Chinese CBDC is progressing at a rapid pace. Mu Changchun, a PBC official, stated that the company intends to assure the adoption of the digital yuan in popular services such as WeChat Pay and AliPay. The technology is currently being tested by those given a special invitation, and it has already accumulated over 10 million users.