Insights on US Dollar Stablecoins
Wang Yongli, who previously served as the vice president of the Bank of China, recently shared insights through an article titled “The Accelerated Development of US Dollar Stablecoins Brings Profound Warnings.” He argued that the United States has enacted a series of laws that bolster the mining and trading of cryptocurrency, effectively positioning these digital assets as a part of its national strategy.
Strategic Implications for the US Dollar
By implementing measures that support the legal circulation of US dollar stablecoins, the US is strategically aiming to gain supremacy in the crypto landscape while simultaneously boosting the attractiveness of U.S. Treasury bonds and consolidating the global status of the dollar.
China’s Response and Hong Kong’s Advancements
Wang emphasized the significance of these developments and urged China to remain vigilant and proactive in its response. Meanwhile, Hong Kong is taking strides in advancing Web3.0 technologies, cryptocurrencies, and Hong Kong dollar stablecoins. The regulatory framework established in Hong Kong is regarded as leading the world, presenting a useful model for mainland China to consider.
Recommendations for Mainland China
Wang advocates that both the financial and regulatory agencies in mainland China, along with academic institutions, should thoroughly investigate these developments. He even proposes the idea of introducing an offshore renminbi (RMB) stablecoin in Hong Kong that could be used for settling crypto asset transactions internationally, thus paving the way toward the broader adoption of RMB stablecoins and the potential release of a digital renminbi.
