The People’s Bank of China intends to intensify research of stablecoins and considers the possibility of supporting national institutions to issue yuan-backed assets.
Specialists of the department published an article titled "A brief analysis of stablecoins". Researchers provide an overview of recent initiatives in this area. Most of the coins reviewed in the material are pegged to the U.S. dollars. For example, the Gemini Dollar (GUSD) and Paxos Standard are mentioned.
The authors of the publication are convinced that the development of USD-pegged cryptocurrency strengthens the role of the U.S. dollar in the global monetary system, while also having a negative impact on other fiat currencies.
“If the U.S. dollar-pegged stablecoins can eventually be widely recognized by the market and can prove their use in the real economy, we should double down on our research efforts [on the issue] and learn from relevant experience to support domestic institutions to issue yuan-pegged crypto stablecoins.”
At the same time, the authors recognize that stablecoins are far from perfect and they still have a long way to go before the economic systems begin to feel at least the minimal impact of new assets.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.