China May Issue Stablecoin Backed by Basket of Fiat Currencies
Main page News, Fintech, Tech, China, Stablecoins

A member of the Chinese People’s Political Consultative Conference and a global managing partner at Sequoia Capital, Shen Nanpeng, has proposed the issue of stablecoin backed by basket of fiat currencies, iHodl Russia has learned.

The basket could reportedly include four fiat currencies such as: Chinese Yuan, Japanese Yen, Korean Won and Hong Kong Dollar. It is expected that the proposed stablecoin might simplify cross-border payments in the Asian region, reduce currency conversion costs and reduce transaction times.

In addition, the proposed stablecoin will become an example for other state digital currencies. Nanpeng added that stablecoin will help the region deal with the economic impact of the coronavirus pandemic through trade promotion.

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Meanwhile, the People's Bank of China (PBoC) wants to speed up the adoption of the cryptos’ underlying technology in the country by implementing its Fintech Development Plan.

The deputy governor of the central bank, Fan Yifei, previously urged the bank's Financial Technology Committee at its first meeting of the year to speed up the implementation of the plan, which was unveiled back in August 2019 and which is focused on the standardization of cross-market fintech operations in China.

Last year, Zhao Dong, Bitfinex's main investor, said that Tether was planning to launch a new version of the stablecoin USDT backed by a basket of commodities such as gold, oil and rubber.

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