The People’s Bank of China is concerned about the risks of stablecoins to the financial system

A senior official said that the People’s Bank of China is “very worried” about the global financial risks associated with digital currencies, especially stablecoins.

Fan Yifei, deputy governor of the People’s Bank of China (PBoC), expressed concern about the reported serious threats to stablecoins such as Tether.USDT) For the global financial and settlement system, CNBC Report Thursday.

The official emphasized that the pace of development of the private payment system is “very amazing” and that the People’s Bank of China is opposing monopolies and “disorderly expansion of capital”, adding:

“The so-called stablecoins of some commercial organizations, especially global stablecoins, may bring risks and challenges to the international monetary system and payment and settlement system.”

Fan pointed out that the Chinese government has taken some measures to limit the expansion of global stablecoins in China. The deputy governor emphasized that the People’s Bank of China will impose the same restrictions on other entities in the payment service market as the Alibaba Ant Group.

It was previously reported that the Chinese government Terminate Ant Financial’s US$37 billion IPO In November last year, it also launched an antitrust investigation against Alibaba.Mu Changchun, head of digital currency research at the People’s Bank of China, later said that the central bank’s digital currency is Designed to provide backup The main target is major retail payment services such as Alipay and WeChat Pay. According to Fan, China’s invitation-based digital element system has accumulated more than 10 million users so far.

In addition to warning against stablecoins, Fan also criticized major cryptocurrencies such as Bitcoin (Bitcoin), claiming that such digital currencies have “become a speculative tool” and pose a potential threat to “financial security and social stability”.

related: Stable currency under review: USDT supports “commercial paper” tether

China has taken a strong stance on the cryptocurrency industry and recently updated its Combating crypto mining activities and also Cryptocurrency trading.

At the same time, some of the world’s largest payment companies, such as Visa, have doubled their positive stance on stablecoins. “Stablecoins are expected to become an important part of the broader digital transformation of financial services, and Visa is pleased to help shape and support this development,” the company Wrote in its official encryption update on Wednesday.