Today at a State Council policy briefing, China has cautioned against the rise of virtual currencies, warning that cryptocurrencies and stablecoins might pose potential threats to the country’s financial security.
Fan Yifei, Deputy Governor of the People’s Bank of China, told reporters that the central bank is keeping an eye on virtual currency speculation. He also confirmed that the central bank’s total approved digital yuan users had surpassed ten million, according to State media China.com.
China’s crackdown on cryptocurrencies and mining has been widely covered. Talking about stablecoins, Yifei expressed concerns about their use for money laundering and illicit activities. But he’s also worried about global stablecoins. When Facebook first unveiled Libra (now Diem), this seemed to spur an acceleration of China’s research into central bank digital currency (CBDC). Today Yifei reiterated concerns about the impact of global stablecoins on the international monetary system and payments.
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