Public Bank Of China Called For Issuing Yuan-Based Stablecoin
China should increase make a research on the topic of stablecoins and consider supporting domestic institutions issuing Yuan-backed cryptocurrencies, researchers from the People’s Bank of China (PBoC) think. Coindesk tells about it referring to an op-ed piece published Tuesday by CN Finance.
The article’s title is “A Brief Analysis of Stablecoins”, PBoC researchers explore recent developments in this area. Most of coins explored by them are USD-backed, Gemini Dollar (GUSD) and Paxos Standard are among them.
The researchers are sure that development of USD-backed cryptocurrencies strengthens the role of American dollar in the global monetary system, having bad impact on other fiat currencies at the same time.
As the authors say, if the USD-backed stablecoins are widely recognized by the market and prove their use in the real economy, China will have to double down on its research efforts and learn from relevant experience to support domestic institutions and to issue Yuan-backed stablecoins.
That said, the authors also point out that the stablecoins still have to make a long way before economical systems will feel any influence of new assets.
OKCoin exchange founder Star Xu expressed similar point of view in a Weibo post, he said that he believes the “Trend of issuing a Chinese yuan stablecoin is inevitable. And OKCoin USA will participate in rolling out a regulated stablecoin.”
To recap, it has become known recently that IT giant GMO was going to issue Yen-backed stablecoin.