TechFlow news, on September 13, Wang Yongli, former vice president of the Bank of China, published an article stating that stablecoins are not an essential and irreplaceable factor for the operation of the on-chain crypto world. Legislation on stablecoins will inevitably drive comprehensive legislation for crypto assets, profoundly impacting the crypto market landscape and could even severely backfire on stablecoins themselves.
The article analyzes that once legislation clearly establishes the legality of stablecoins and crypto assets, payment institutions such as banks could connect directly with public blockchains or on-chain trading platforms, enabling the tokenization of deposits. This would allow customers to directly convert off-chain fiat deposits into on-chain encrypted fiat currency, replacing fiat-backed stablecoins as the bridge between the crypto world and the real world. This would reduce the additional steps and costs currently incurred by non-financial institutions in converting between fiat and stablecoins.
Wang Yongli suggests that China's focus should not be on developing RMB stablecoins—a space already highly constrained—but rather on achieving a leapfrog transformation by accelerating comprehensive crypto asset legislation, encouraging financial institutions such as banks to move onto blockchains faster, actively promoting the development of RWA (real-world assets), attracting crypto exchanges to register in Hong Kong or locally, and expediting the on-chain operation of the RMB.
