PANews, July 19 — According to Caixin, Guan Tao, the global chief economist at BOC International Securities, stated at a recent online seminar of the China Macroeconomic Forum (CMF) that dollar stablecoins are not legal tender in the United States and lack sovereign credit guarantees. A 'wait-and-see' attitude can be taken towards stablecoins, and there is no need to rush; it is unnecessary to 'mythologize' or 'be superstitious' about stablecoins. We should maintain strategic determination in developing digital currencies and promoting the internationalization of the Renminbi. Guan Tao believes that China actually already has formally 'stablecoin-like' assets. For example, the Hong Kong dollar is issued by three local note-issuing banks according to a fixed exchange rate of 1 USD to 7.8 HKD, but unlike many stablecoins, even the Hong Kong dollars issued by different banks are interchangeable and indistinguishable. Additionally, customer funds from third-party payments such as WeChat and Alipay are fully entrusted to the People's Bank of China, which is similar to the issuance of stablecoins at a 1:1 ratio, while in practice, payments and settlements still use the Renminbi.
Guan Tao further pointed out that as stablecoins pegged to fiat currency are increasingly seen as 'substitutes for fiat currency' and are brought under regulation, their original advantages will actually be weakened. If stablecoins are considered true currency, then currency as a general equivalent will inevitably lead to oligopoly, making it difficult for most stablecoin issuers to survive or profit.
