China Takes Action Against Group of Altcoins, Says They Could Endanger Global Monetary System (Report) – .

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China Takes Action Against Group of Altcoins, Says They Could Endanger Global Monetary System (Report) – .


China is sounding the alarm on crypto assets linked to fiat currencies. The country’s top banking official said such stablecoins pose a risk to the global monetary and payments system, according to a CNBC report.

The report quotes People’s Bank of China (PBoC) vice-governor Fan Yifei as saying that “some steps” have been taken to contain the “risks and challenges” posed by privately issued global stablecoins.

“The so-called stablecoins of some trade organizations, especially global stablecoins, can present risks and challenges to the international monetary system, and the payment and settlement system, etc. We are still quite concerned about this issue, so we have taken some action. “

The report further states that the PBOC Deputy Governor views decentralized cryptocurrencies as speculative financial instruments that could destabilize financial security and society as a whole.

“These [digital] currencies themselves have become tools of speculation. [They are potential threats to] financial security and social stability.

Yifei’s statement coincides with China’s continued crackdown on Bitcoin mining and the imposition of restrictions on businesses related to crypto trading. China’s efforts to promote its central bank digital currency, the Digital Yuan, continue to gain momentum, however.

Vice President of Portfolio Marketing at crypto-focused venture capital firm Sino Global Capital, Sally Wang, this China has global ambitions for the digital yuan.

“According to the current trend, China is separating the concept of cryptocurrency from blockchain and advocating tokenless blockchains. It aims to transform the digital DCEP / Yuan into a truly global currency. “

Wang further this that the “challenge” for China when it comes to decentralized cryptocurrencies is that it cannot control them.

“Cryptocurrencies, especially Bitcoin, are a challenge for Beijing because the PBOC cannot track the flow of funds. The PBOC has always been extremely concerned about the destabilizing risk of capital outflows. “
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