Fan Yifei, deputy governor of the People’s Bank of China (PBoC), said that Bitcoin and stablecoins have become speculative instruments, posing risks to the security of the financial system and social stability. This was reported by journalist Colin Wu.
Many people may not understand its importance. It is the first time Chinese government responded to the reasons for the recent crackdown on Bitcoin, and first time explain its concerns about stablecoins. And USDT is mainly used by Chinese. https://t.co/s9k0PR1RRc https://t.co/CtCIGeeMb2
— Wu Blockchain (@WuBlockchain) July 8, 2021
Answering journalists’ questions at a State Council briefing, Fan Yifei said that private digital currencies and central bank digital currencies (CBDCs) should be distinguished. The former include Bitcoin and stablecoins issued by non-state entities.
“The so-called stablecoins, especially global ones, can create risks and threats to the international monetary, payment and settlement system. We remain concerned about this issue, and thus have taken some measures,” the official stressed.
According to Wu, the Chinese government for the first time outlined the reasons for pressure on the cryptocurrency mining industry and revealed its concerns about stablecoins. The journalist noted that Tether (USDT) “is mainly used by Chinese.”
According to analytics firm Chainalysis, Chinese residents используют USDT для вывода капитала за рубеж, as authorities have set a limit of $50,000 on fiat international transactions for individuals.
Fan Yifei noted that the PBoC continues to actively promote the digital yuan. According to him, regulator studies confirmed that wholesale CBDC will not adversely affect the existing financial system.
“The debates about whether retail CBDC will lead to financial disintermediation, whether it will weaken monetary policy, or trigger deposits withdrawals from banks, are still ongoing. We are also very concerned about these issues. At present we are in the testing phase,” added the deputy governor of the PBoC.
He confirmed that China would use the digital yuan during the 2022 Winter Olympics, which will begin in February.
According to Shenzhen Financial News, ICBC, Bank of Communications and four unnamed credit institutions have instructed their staff to promote CBDC among acquaintances.
On average each specialist must recruit 200-300 people per year. Whether he meets the plan determines his annual bonus.
Earlier ICBC added the ability to convert yuan to CBDC and back in more than 3,000 ATMs in Beijing.
Recall that Chengdu, the capital of Sichuan province, announced the distribution of 12 million digital yuan among the population. The distinctive feature of the distribution was programmable uses of CBDC.
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