Former Bank of China vice governor Wang Yongli said that comprehensive steps to regulate cryptocurrencies should be accelerated.
In his statement, Yongli argued that stablecoins are neither indispensable nor substitutable for the functioning of the on-chain crypto world.
According to Yongli, stablecoin regulations will inevitably trigger regulation of the entire crypto asset class, which could have profound market impacts. However, they also carry the risk of negative consequences for stablecoins.
Yongli argued that China should be more deliberate and proactive in this process, saying the country’s focus should not be on developing a RMB-based stablecoin. Instead, he argued that all cryptoasset laws should be swiftly implemented, banks and other financial institutions should be encouraged to transition to blockchain, the development of real-world assets (RWA) should be actively supported, and cryptocurrency exchanges should be registered in Hong Kong to accelerate the on-chain operation of the RMB.
*This is not investment advice.