China Urged To Launch Yuan-Stablecoin Says Finance Experts
According to CN Finance reports issued the 9th of October, China’s government is urged to consider the notion of developing a stable coin that is yuan-backed despite an enforced ban on digital assets in the nation. Li Liangsong, a PBoC expert, and a professor at the Fudan University, Wang Huaqing, published a piece for CN’s finance-focused monthly journal.
The document offers an overview of tokens supported by the United States dollar including Tether as well as the Winklevoss' Gemini dollar. Researchers believe that these coins will play a role in increasing the position of the dollar globally whilst weakening traditional fiat currencies including the yuan. Liangsong and Huaqing suggest nations such as China, in particular, should boost efforts to develop a locally backed stable coin whilst maintaining the ban on all other digital assets.
US Dollar-Backed Stablecoins on the Rise
A recent boom in the stable coin sector has been noted with two US dollar-backed coins scheduled to be introduced into the United States by September. Industry figures, the Winklevoss borthers, received permission from New York regulatory organizations to launch a stable coin called Gemini dollar. This was followed by an announcement from Circle in association with Bitmain expressing its intentions to establish a US dollar-backed coin called the USD Coin. Soon PwC collaborated with a crypto lending platform, Cred, towards creating a US dollar-backed coin.
China initially began enforcing a crypto ban last year and proceeded to shut down all operating digital asset exchanges within the nation in addition to banning all scheduled ICOs. Since initiating the ban, citizens are consistently reminded of the risks associated with digital asset trading. Regardless of these policies, China has been heavily involved in researching blockchain use cases and development. Recent reports state that PBoC plans to launch a blockchain-based finance platform based in the city of Shenzhen. The network will have tests run in various cities across the country where developments for cross-border transactions will take place. To add on, China dubbed a region called Hainan province to be the new blockchain-based pilot zone equipped with a focused technology park.