China’s central bank is closely monitoring stablec
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China’s central bank is closely monitoring stablecoins in cross-border payments
The People’s Bank of China said stablecoins could play a larger role in cross-border payments and called for closer monitoring of their impact on the international monetary system and global payment networks.
According to remarks delivered by Wang Xin, director-general of the Research Bureau of the People’s Bank of China, at the Lujiazui Forum on June 17, policymakers are paying close attention to how stablecoins could affect the international monetary system and cross-border payment networks.
Addressing a session on global financial governance reform and cooperation, the central bank official said sustainable development depends on large volumes of cross-border investment and financing activity, which in turn requires efficient and diversified payment infrastructure. He added that growing uncertainty in the international payment system, including the risk of payment channels being used as geopolitical tools, could affect normal cross-border transactions.
Against that backdrop, the official said central bank payment systems and retail payment networks should strengthen connectivity while policymakers carefully explore new payment technologies. Stablecoins, he noted, may play a more prominent role in international payments in the future, making regulatory coordination and international cooperation increasingly important.
“We also need to pay attention to some new aspects,” Wang said, referring to stablecoins and central bank digital currencies.
He said the role of stablecoins in cross-border payments, as well as future regulatory and international coordination arrangements, deserves continued attention. He added that the cross-border use of central bank digital currencies is another area that warrants close observation and policy cooperation.
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