🚨NEWS UPDATE🚨
📊China’s Central Bank (PBOC) recently confirmed that blockchain technology is driving the strong growth of stablecoins, while also restructuring cross-border payment methods and posing significant challenges to financial oversight.
Stablecoins – cryptocurrencies pegged to fiat currencies like USD – have entered a new wave of development, with trading volumes and collateral assets surging. Research from the Financial Times notes that the market size could reach $2 trillion by 2028, as the advantages of speed and low costs in cross-border payments become increasingly recognized by businesses.
However, the boom in stablecoins also puts pressure on the oversight framework: these currencies currently face only light regulation, which can lead to liquidity risks, inadequate reserves, and misuse for illegal transactions. According to a report from the Committee on Payments and Market Infrastructures (CPMI) under the BIS, without strict oversight mechanisms, stablecoins could undermine the domestic financial system and complicate the monetary stability objectives of central banks.
