PBOC Says Stablecoins Are Emerging as New Variable in Global Monetary System

China’s central bank said stablecoins and other digital assets are emerging as a new variable in the international monetary system.

Mu Changchun, director-general of the Digital Currency Institute at the People’s Bank of China, made the remarks at the Summer Davos forum on June 26, according to BlockBeats and other outlets. He said a new variable in the international monetary system is taking shape in the form of digital assets.

Stablecoins and other digital assets are developing rapidly, driving global cross-border payment systems into a new stage, Mu added.

He also mentioned mBridge, the China-led global payment infrastructure for central bank digital currencies. The Financial Times reported that China recently set up an mBridge entity in Hong Kong and is preparing for a commercial launch. Cumulative transaction volume on mBridge was close to 500 billion yuan, or about $69.7 billion, as of the end of last year, Mu said.

Its ultimate goal is to develop into a new financial market infrastructure jointly built by multiple central banks and joined by financial institutions, he said.