This post was originally published on Coinspeaker
Key NotesPBoC Governor Pan Gongsheng highlighted the potential of stablecoins to safeguard against politicized traditional payment systems.Former PBoC chief Zhou Xiaochuan warned that dollar-linked stablecoins could accelerate global dollarization, and China needs to act early.Morgan Stanley suggests China may use Hong Kong as a pilot zone for offshore yuan-based stablecoins, enabling innovation without violating capital controls.
China’s central bank, the People’s Bank of China (PBoC), has asked government officials to explore using stablecoins for cross-border payments.
This push comes at a time when the US is on the verge of passing the GENIUS Stablecoin Act in the Senate, while cementing the dollar’s dominance through USD-backed stablecoins.
Although China hasn’t officially embraced stablecoins due to its ban on crypto activities, it might be looking to reverse its previous calls. The recent comments from senior PBoC officials have reignited debate over their possible use in cross-border payments.
Pboc governor explains importance of stablecoins
Last month in June, PBoC Governor Pan Gongsheng said that stablecoins have the potential to transform international finance, especially as growing geopolitical tensions expose the vulnerabilities of traditional payment systems.
He further added that stablecoins could help against politicizing and weaponizing traditional payment systems through sanctions.
Former central
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