Stable Coins Are Biggest Risk for International Monetary System : People’s Bank of China
Deputy governor of China Central Bank warned all the mentory authorities about private Cryptocurrency & Stable coin. According to him, stable coins will negatively impact global financial infrastructure.
In a recent interview on CNBC.com, Fan Yifei, Deputy Governor of People’s Bank of China & Ex Chairman of Shanghai Bank stated that Stable coins may negatively impact the financial system at international level and also they can challenge the financial Global ecosystem in negative ways.
“Some commercial organizations’ so-called stablecoins, especially global stablecoins, may bring risks and challenges to the international monetary system, payments and settlement system, etc.”
Top banking executives of the China Monetary Authority expressed their opinion on stable coins and they said China’s central bank is much worried about the Stable coins because they can bring a big risk to the Monetary system. And financial authorities should take perfect action, so that they can handle the situation in future easily.
Fan Yifei further continued his statement about digital currency, these can be dangerous for financial and social security.
“speculation tools,” which have the potential to endanger financial and social security.
One thing we can perfectly notice, People’s Bank of China is against the decentralisation system but opposite of it they are creating their own digital currency ” digital Chinese yuan” , which will be in the control of China’s central bank.
Many experts say China banned Cryptocurrency mining & trading because they want to create their own Digital currency and digital currency Market to make money. There are many other countries which allow Cryptocurrency use in all possible ways with legal rules.
Related: China Announced Central Bank Digital Currency (CBDC)
But this is China who wants to go in a separate path, probably they are only trying to spread their success to create their own Blockchain ecosystem instead to adopt the existing Cryptocurrency market.
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