TechFlow, August 28 — According to a report by the Financial Forty Forum, Zhou Xiaochuan, former governor of the People's Bank of China, recently shared his views on the development prospects and potential risks of stablecoins from six dimensions. He pointed out that stablecoins could trigger excessive money supply and amplify high-leverage risks, with amplification effects manifesting through channels such as deposit-lending, collateralized financing, and asset market transactions.
Zhou questioned the practical need for decentralization and tokenization, noting that existing centralized account systems have performed well. He emphasized the need to guard against price manipulation in stablecoin trading markets, urged commercial entities issuing stablecoins to balance profit motives with public service ethos, and indicated limited appeal in cross-border payment use cases. Zhou called for multidimensional analysis of stablecoin development paths and cautioned against one-sided thinking and imprecise conceptual usage.
