Central Bank of China: stable coins Vormen ‘Risico’ S ‘ voor Het Wereldwijde financial system

China’s Central Bank is “highly concerned”about the potential impact of Global stable coins on the international financial system, CNBC reported Thursday.

The people’s Bank of China (NBK) Deputy Governor fan Yifei, told reporters, “in particular, Global stable money, risks and challenges for the International Monetary System, and payment and settlement system”series of so-called stable coin, that is the commercial organization said.

Yifei added that the Chinese authorities were ” quite concerned about this issue “and were”taking a number of measures.”

What are stable coins?
Stable coins are cryptocurrencies that claim to be supported by Fiat currencies in a 1:1 ratio and aim to overcome price volatility by providing a stable value against the government-issued currency. They are often used as a store of value or settlement, and payments are another popular use case.

The Tether (USDT) is the most widely used stable coin with a market cap of over $ 62 billion, according to nomics. While tether claimed that each USDT 1: 1 coin was backed by cash reserves denominated in US dollars, the claims were questioned by critics.

The New York Attorney General’s office has filed a long-running lawsuit against the crypto exchanges tether and bitfinex (with which it shares most of its management team), forcing tether to disclose details of its reserves in May. The post showed that less than 3% of Tether’s reserves were held in cash.

Tether announces reserve allocation for first time since 2014
While the PBoC has not disclosed the exact measures to be taken to curb the growth of stable coins, fan Yifei said the pace of system development was “very worrying” and the Central Bank opposed monopolies and “irregular capital growth.”

Digital yuan nears
NBC’s comments come against China’s efforts to create a digital version of the yuan, also known as the development of the digital currency electronic payment system

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