A recent opinion piece published in several Chinese outlets considers how China should respond to the proliferation of US dollar stablecoins. President Trump’s executive order on cryptocurrencies promoted the use of dollar stablecoins, not just domestically but worldwide. Europe has already raised concerns about monetary sovereignty, despite having limits on the usage of foreign currency stablecoins for everyday payments. Now it seems it’s China’s turn. One of its proposals is that China try stablecoins.
The Chinese article, “Digital currency reconstructs the international financial system”, was authored by Zhang Ming, the Deputy Director of the National Finance and Development Laboratory, the first economics think tank created in China, although there are now several.
He notes that US dollar stablecoins are already the dominant fiat currency for crypto trading as well as in decentralized finance (DeFi) for crypto-linked loans. Additionally, dollar stablecoins are sought after by residents in countries with weak currencies to act as a store of value.
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