A researcher from the People’s Bank of China (PBOC) argues that China should increase its research efforts on the subject of stablecoins, and domestic institutions should consider issuing yuan-pugged cryptocurrency.
CN Finance, a bi-weekly magazine and the mouthpiece of the Chinese Central Bank published an op-ed on Tuesday called “A Brief Analysis of stablecoins”, which co-authored by Li Liangsong PBOC researcher and Professor of Chinese Fudan University.
This article has discovered the latest development of Stablecoin in the world, which is mostly applied for the US dollar, some of which are supported by regulators like Gemini Dollars (GUSD) and Paxos Standard.
The authors argued that the development of these American dollars pegged cryptocurrencies in the global monetary system is in the U.S. Will strengthen the key role of U.S dollar but can negatively impact other major Fiat currencies.
“If the US dollar-pegged stablecoins can eventually be widely recognized by the market and can prove their use in the real economy, then we should double our research efforts [on the issue] and relevant to the release of domestic institutions Yuan-Pegged Crypto Stablecoins, “said the authors should learn from experience.
Apparently, that point, Star Xu founder of Crypto Exchange OkCoin said in a web post Wednesday that he believed that “the trend of releasing Chinese Yuan stablecoin is mandatory, and OkCoin USA will participate in running a regulated stablecoin . ”
He said, the authors of the CN Finance article also told that stablecoins can still go a long way before they can put a real impact on global economies.
“If stablecoins can finally be scaled, the role of central banks can be in a dilemma.” Fiat currencies issued by central banks will become collaterals for stablecoin but the market will not end in circulation. The role will be limited. Settlements and monetary policies, “the authors said, concluded:
“The development of this monetary system will eventually be achieved by the Fiat Digital currency issued by the central bank.”