Zhou Xiaochuan, China's former central bank governor, has expressed concerns about the risks and opportunities associated with stablecoins. He emphasized that stablecoins could face instability if their issuance and leverage are not properly managed. While acknowledging their potential to support decentralized finance (DeFi) and tokenization, Zhou noted that existing payment systems often suffice for current needs.
Zhou highlighted the importance of compliance, investor protection, and actual circulation demand in the stablecoin market. He cautioned that speculative use of stablecoins could threaten their sustainability, advocating for a careful and multidimensional approach to their development and regulation.
Zhou Xiaochuan Warns of Stablecoin Risks and Opportunities
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