China's PBOC Governor Warns of Stablecoin Risks

The People's Bank of China (PBOC) has voiced concerns about stablecoins (virtual assets whose value is linked to fiat currencies).

On the 28th (Korea time), Bloomberg reported that Pan Gongsheng, governor of the PBOC, said at the Beijing Forum, "Stablecoins do not meet basic requirements for customer identification and anti-money laundering, and they exacerbate gaps in global financial regulation."

Pan said that at meetings of the International Monetary Fund (IMF) and the World Bank, other central bank governors and finance ministers commonly expressed concerns. He said stablecoins "create a strong speculative atmosphere in markets, increase the vulnerabilities of the global financial system, and affect the monetary sovereignty of some developing countries."

China is attempting to strengthen regulation in response to the rapid growth of stablecoins. Earlier this year, China ordered local firms to stop publishing research or holding seminars on stablecoins.

In addition, Pan emphasized that the PBOC will strengthen the 'currency-tier' status of its digital currency, the e-CNY.