According to researchers from the People’s Bank of China (PBoC), the Chinese government should consider creating its own yuan-backed stablecoin.
The statement was made last Tuesday, October 9, on the CN finance bi-weekly magazine. Entitled “A Brief Analysis of Stablecoins”, the article was co-authored by PBoC researcher Li Liangsong and Wang Huaqing, a professor from Fudan University. It centered around USD- backed stablecoins, reviewing and mentioning Tether (USDT), Gemini dollar (GUSD), and Paxos (PAX).
The researchers expect that USD-backed stable coins will increase the role of the US dollar on a global scale and start suppressing other fiat currencies, the Chinese yuan being one of them.
They went on to explain:
If the U.S. dollar-pegged stablecoins can eventually be widely recognized by the market and can prove their use in the real economy, we should double down on our research efforts [on the issue] and learn from relevant experience to support domestic institutions to issue yuan-pegged crypto stablecoins
The authors also concluded that stablecoins will be the future norm, addingthat the evolution of the monetary system “will likely be eventually achieved by a central bank-issued fiat digital currency”.
Like it or not, stablecoins seem to be trending in the cryptoworld.
In the last month alone, two USD-backed coins were launched. The Gemini dollar, created by the Winklevoss twins for their exchange after getting permission from New York regulators, and the USD coin, launched by Circle through a consortium that includes Bitmain.
What’s more,it seems there are even more stable coins waiting to be released.
PricewaterhouseCoopers (PwC), one of the 'big 4’ accounting firms, has partnered with Cred, a decentralized lending platform, to issue another USD stable coin. In Japan, internet giant GMO has also revealed plans to create the first ever Yen-backed stable coin.
OKCoin Issuing Yuan-Based Stablecoin
Apparently, it didn’t take long for OKCoin to follow the advice of the PBoC. CEO of OKCoin, Star Xu, announced yesterday on twitter that OKCoin USA, sister company of OKCoin created after China’s crypto ban, will be launching a Yuan-backed stable coin:
Embracing the tide of technology, the launch of a #CNY backed #stablecoin is an inevitable trend, and it will significantly improve the internationalization of the RMB. OKCoin USA will launch a fully compliant stablecoin.
Star Xu went on to defend stablecoins, arguing that they have all the attributes of electronic cash, and t seems an avalanche of stablecoins might be entering the market in the months to come.