Influential academic says China should introduce crypto stablecoin

An influential academic Zhang Ping suggested to the Chinese Central Bank to introduce a stablecoin for the Metaverse, in order to keep the virtual world away from real world to keep the risks away.

China is tech adaptive country, where there is a very big room for blockchain technology & blockchain technology-based projects like Metaverse & Web3 but there is no room for cryptocurrencies. In 2021, China banned cryptocurrencies fully & also kicked out all the businesses operating their services in favor of cryptocurrencies like miners & Mining hardware makers. 

During the 2022 Word Artificial Intelligence Conference, which was held in Shanghai, an academic of the Chinese Academy of Engineering, Zhang Ping, said that there is a need for stablecoin introduction in the country, which should also be backed by the Central Bank. 

This Chinese Academy is an institution, which provides policy consultation to the Chinese State Council.

According to Zhang, the Chinese government is officially moving toward the Metaverse & Web3 and this sector needed its seprate infrastructure. 

Zhang asserted that China needed to take action to stop the production of huge data information.

He said: 

“(Instead) becoming the largest data producer while other countries master the core technologies and standards.”

Zhang noted that if Central Bank can issue a crypto RMB then it will help the Metaverse ecosystem a lot because it will “tighten the alliance between the government and the market.”

Academic personality also suggested the People Bank of China give this responsibility of Crypto RMB to any commercial bank to operate in a particular region as a pilot program and further expand it to the whole country. 

According to Zhang, Metaverse & Web3 are national security issues of sovereignty and ideology. Zhang noted that Web3 is a pure software-based concept and it is hard to impose the currently existing infrastructure on the Web3 protocols.

Read also: World Economic Forum appreciates CBDCs as an alternative to Cash