Former Governor of the People's Bank of China Zhou Xiaochuan: Stablecoins May Trigger Speculation, Limited Advantage in Cross-Border Payments

BlockBeats News, August 28th, according to Bloomberg, former central bank governor Zhou Xiaochuan warned in a closed-door meeting in mid-July that stablecoins could trigger speculative behavior, thereby undermining financial stability.

Zhou Xiaochuan pointed out that stablecoins have limited advantages over China's existing retail payment system in terms of cost, and the notion that traditional cross-border payments are "very costly" may be exaggerated. He also stated that the regulatory frameworks in the U.S., Hong Kong, and Singapore have not yet fully protected the requirement that stablecoins should be "fully backed by liquid assets," emphasizing the need to be vigilant against their excessive use on speculative asset trading platforms leading to fraud and systemic risks.