TechFlow news, December 5: Wang Yongli, former vice president of the Bank of China, published an article on his official account analyzing China's reasons for firmly halting stablecoins.
Wang Yongli pointed out that China's policy direction of accelerating the development of digital RMB and resolutely curbing virtual currencies, including stablecoins, has become completely clear. This decision is a comprehensive consideration based on multiple factors such as China's global leading advantage in mobile payments and digital RMB, RMB sovereignty security, and monetary and financial system stability.
Wang Yongli believes there is little room and opportunity for developing non-dollar stablecoins, as dollar-based stablecoins already occupy over 99% of the market capitalization and trading volume of fiat-backed stablecoins globally. He emphasized that, given the dominant position of dollar-based stablecoins in the crypto asset trading market, if China follows the path of dollar-based stablecoins to develop RMB stablecoins, it would not only struggle to challenge the international status of dollar-based stablecoins but might also turn RMB stablecoins into subordinates of dollar-based stablecoins, posing a serious threat to RMB sovereignty security and the stability of China's monetary and financial system.
Wang Yongli stated that China already holds a globally leading edge in mobile payments and digital RMB, and should firmly advance the development of digital RMB, forging its own Chinese path in digital currency development.
