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China's central bank warns of global risks from stablecoins, virtual currency speculation

July 9, 2021

China's central bank is "quite worried" about risks to the global financial system from private digital currencies and has taken some measures, said Fan Yifei, vice governor the People's Bank of China (PBOC), at a media conference in Beijing on Thursday.

Digital currency issuers can be private issuers or central banks, Fan said. The typical representatives of private digital currencies are currencies such as bitcoin, as well as various so-called stablecoins.

The central bank is still observing and studying whether the private digital currencies exist as monetary credit or not, according to Fan.

On Tuesday, a department of the PBOC ordered the shutdown of a Beijing-based software maker over its suspected involvement in cryptocurrency trading.

(Sources: China Report)

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