Former People's Bank of China Governor: "Stablecoins Could Cause Financial Instability"

Suehyeon Lee

Summary

Zhou Xiaochuan, former governor of the People's Bank of China, said that stablecoins could encourage speculation and harm financial stability.
Zhou said that the cost-saving effect of stablecoins is limited compared to the existing retail payment system in China.
He said that the claim that traditional cross-border payment costs are extremely high may be exaggerated.

Zhou Xiaochuan (周小川), former governor of the People's Bank of China (PBOC), said that stablecoins could encourage speculation and harm financial stability.

On the 28th (local time), according to UBlockchain, Zhou pointed out that "the cost-saving effects of stablecoins are limited compared to China's existing retail payment system." He also added that "the claim that traditional cross-border payment costs are 'extremely high' may be exaggerated." Meanwhile, Zhou is known as the figure who led efforts to promote the digital yuan (CBDC).