Cryptocurrencies like bitcoin (EXANTE: Bitcoin) and stablecoins pose threat to China's financial stability, said Deputy Governor at People's Bank of China (PBoC) Fan Yifei. The Deputy Governor also called for the separation of private digital currencies and central bank digital currencies (CBDC).
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"The so-called stablecoins, especially the global ones, can pose risks and threats to the international monetary, payment and settlement systems. We are still concerned about this issue, so we have taken some measures," Chinese crypto reporter Colin Wu cited Yifei's statement.
According to Wu, this is the first time the Chinese government has voiced the reasons for the pressure on the mining industry and has revealed its concerns on stablecoins. He also noted that tether (USDT) is "mainly used by the Chinese."
Yifei also said that the PBoC continues to actively promote the digital yuan. According to him, the regulator's research has confirmed that wholesale CBDC will not have a negative impact on the existing financial system.
Yifei's statement follows the recent crackdown the PBoC imposed on a local software maker Beijing Qudao Cultural Development Co Ltd after the company was found to have engaged in cryptocurrency trading. The authorities ordered the company to cease its operations and shut down its website.
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