Former Vice President of Bank of China: The policy stance of resolutely curbing virtual currencies, including stablecoins, has been made completely clear.

On December 5, Wang Yongli, former Vice President of Bank of China, published an article titled “Why Has China Decisively Banned Stablecoins?” The article states that China’s policy direction of accelerating the development of the digital RMB and resolutely curbing virtual currencies, including stablecoins, has become completely clear. This is a comprehensive consideration based on multiple factors, including China’s global leadership in mobile payments and digital RMB, the security of RMB sovereignty, and the stability of the monetary and financial system. With the global spread of US dollar stablecoins, increasingly sharp and complex international relations, and intensified international currency competition, how the RMB innovates and develops, maintains national security, and achieves the strategic goal of becoming a strong currency and financial power will have a huge and far-reaching impact. It is necessary to analyze calmly, make accurate judgments and early decisions—not to be indifferent or hesitant, nor to blindly follow the trend and make fundamental, disruptive mistakes.

Wang Yongli believes:

· US dollar stablecoins have monopolized the global market, leaving almost no survival space for non-dollar stablecoins; · US stablecoin legislation primarily serves its own interests and may even backfire on the stablecoin system; · Promoting RMB stablecoins not only offers no advantage, but may threaten RMB sovereignty and financial security; · The use of stablecoins and virtual currencies for cross-border money laundering, fraud, and other risks is prominent; · China already holds a global leading position in mobile payments and the digital RMB, and does not need to follow the US dollar stablecoin route.