The central bank of China is deeply concerned about global financial risks associated with digital currencies, specifically stablecoins, a high ranking official said.
Vice President of Bank of China (PBOC) Pan Yifei expressed concern that threats such as Tether (USDT) are taking the global financial system seriously, CNBC reported on Thursday.
Officials stressed that the pace of development of private payment systems is “highly uncertain”, the NBK opposes monopolies and “irregular capital increases” and that globally stable currencies, international monetary systems, and payment and payment systems can pose risks and challenges.
The government of china is limiting the expansion globally of steel coins. The vice president said that they will have the same restrictions that Alibaba`s Ant Group had on other institutions in the payment industry.
Mu Changchun, director of digital currency research at PBoC, later said that the Bank of China digital currency is designed to support large-scale flat rate payment services such as AliPay and WeChat Pay.
Aside from the Steelcoin warnings, fans have also criticized major cryptocurrencies such as Bitcoin (BTC). Bitcoin turns this digital currency into a instrument for financial security and social stability.
China has taken a firm stance against the cryptocurrency industry and recently resumed its cryptocurrency mining activities and the growth of cryptocurrency trading.
Visa stated their positive outlook towards Stablecoin. Stating that “Stablecoins will have a massive impact on transformation of financial and digital services, and Visa will be a part of the development,” the company wrote .