A deputy governor of China's central bank has voiced concern that stablecoins, such as Tether, could pose a risk to the stability of the global financial system.
“Some commercial organizations’ so-called stablecoins, especially global stablecoins, may bring risks and challenges to the international monetary system, payments and settlement system,” the report cited Fan as saying.
The banker said the PBOC is already taking measures against cryptos.
On Tuesday, the PBOC closed a Beijing-based company that provides software services for virtual currency transactions, reaffirming the central bank's stance that no businesses under its purview should engage in such transactions.
“These currencies have themselves become speculation tools,” said Fan, who added they posed a risk to “financial security and social stability.”
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