Fan Yifei, Deputy Governor of the People’s Bank of China (PBOC), expressed concern about the serious threat that stablecoins, including Tether (USDT), pose to global financial and settlement systems, CNBC reported.
The official stressed that the speed of development of private payment systems is very alarming, in connection with which the NBK is working against monopolies and “indiscriminate capital increases”:
The so-called stablecoins of some commercial organizations, especially global stablecoins, can pose risks and problems for the international monetary system, as well as for the payment and settlement system.
Fan noted that the Chinese government has already taken measures to limit the spread of global stablecoins in the country. The Deputy Governor stressed that the NBK will apply the same restrictive measures as against Alibaba’s Ant Group.
As you know, in November last year, the country’s government suspended Ant’s IPO for $ 37 billion, and also initiated an antitrust investigation against Alibaba.
Mu Changchun, head of digital currency research at PBoC, later said that the digital currency of China’s central bank is meant to back up major retail payment services such as AliPay and WeChat Pay.
In addition, Fan criticized major cryptocurrencies such as Bitcoin (BTC), claiming that such digital currencies “have become instruments of speculation” and pose a potential threat to “financial security and social stability.”
China has taken a tough stance against the cryptocurrency industry, discouraging cryptocurrency mining activities.
At the same time, the world’s largest payment companies such as Visa have confirmed their optimism about stablecoins.
Stablecoins are poised to be an important part of the broader digital transformation of financial services, and Visa is excited to support this development, Visa said.
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