In recent statements, representatives of the central bank of China and the central bank of the United States have expressed themselves quite dissatisfied with the legislation (or lack thereof) that regulates stablecoins.
China's central bank is "very concerned" about the potential impact of global stablecoins on the international financial system.
In a conversation with journalists, Fan Yifei, deputy governor of the People's Bank of China (PBoC), said that “the so-called stablecoins of some commercial organizations, especially global stablecoins, can bring risks and challenges to the international monetary and payments system. settlement. ”
Yifei added that Chinese authorities are "very concerned about this issue" and "have taken some steps".
Stablecoins are cryptocurrencies that claim to be backed by fiat currencies in a 1:1 ratio and aim to overcome price volatility by maintaining a stable value relative to a currency issued by the state. Often they are used as store of value or units of account, payments being another popular use case.
Tether is the most widely used stablecoin, with a market capitalization of over $62 billion.
The PBoC did not reveal what measures it is taking to curb the expansion of stablecoins, but Fan Yifei said that the speed of development of payment systems is "very alarming" and that the central bank is working against monopolies and "disorderly capital expansion. ”
In the case of the United States, the one who asked for more regulation for the asset class was Jerome Powell.
At a meeting in the House of Representatives, the Fed chairman said that stablecoins should be subject to stricter regulation and be treated like bank deposits or money market funds.
Although central bank criticism is aimed at stablecoins, we must remember that these monetary authorities have their own agenda and having a system growing and developing outside of their control is something that is simply not in their plans.