Speaking at a closed meeting in Beijing, Xiaochuan doubted that the stablcoins tied to Chinese yuan would be able to strengthen the financial system of China. On the contrary, they destabilize it, said the former head of the NBK. He insists that the alleged advantages of stablecoins are greatly exaggerated.
In his opinion, the statements of “excessively expensive” cross -border transfers through existing payment systems are incorrect. The Chinese retail payment networks Alipay and Wechat Pay, as well as digital yuan, have already proved their effectiveness, without requiring large costs, Siaocaun said. Stebblecoins can become speculative tools for manipulating and fraud. XiaoChuan fears that the regulatory framework of the USA, Hong Kong and Singapore regarding stablecoins does not fully protect investors, and the large-scale introduction of such cryptocurrencies destabilizes the markets.
The statements of XiaoChuan followed after the publication of the plans of the Chinese government to approve the security stablecoins for the calculations to prevent the dominance of the American dollar. The ex-head of the NBK called on the China authorities not to follow the US example and not to switch to stabelcoins, as this will weaken the ability of Beijing to control the movement of capital.
Recently, the General Director of Hashkey Group, Xiao Feng, suggested that China, where mining and trade in cryptocurrencies have been banned since 2021, could return to cryptocurrencies through stabilcoins.
Source: Bits
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