Zhou Xiaochuan Flag Six Risks of RMB Stablecoin
Former PBOC governor Zhou Xiaochuan bin warn say e get strong risk to launch RMB stablecoin and e beg regulators and people wey dey issue am make dem stop development for now. For one closed CF40 seminar, e ask why dem need tokenization and decentralization when China QR code, NFC mobile payments and digital yuan don already dey bring efficiency. Zhou talk six main risk levels for RMB stablecoin. From central bank side, una backed issuing and high leverage fit make currency too much and get multiplier effect. E recommend say PBOC or their agents make dem keep reserve safely and dey track how e dey circulate well. For payment system, e talk challenge of KYC, AML and CFT compliance. For market trading, Zhou mention cases where price manipulation and fraud happen, e warn say current rules for US, Hong Kong and Singapore no too strong. At issuer level, e warn say commercial reason fit clash with public infrastructure roles. Lastly, e talk say if demand weak and no clear redemption way, e fit limit stablecoin circulation and make people use am for speculation.
Bearish
Zhou Xiaochuan warnings and call for small pause ontop RMB stablecoin research dey show say regulators dey watch well well, e make people dey doubt how ready market be. For short term, traders fit reduce how dem take new Chinese stablecoin projects because dem dey fear compliance and how money go flow. For long term, the cautious way fit slow down how RMB stablecoin go take start and how e go take catch on, e go also make people no too optimistic and slow development for this area.