Former Bank of China Executive Warns of Stablecoin Threat to Yuan Internationalization

Wang Yongli, former deputy governor of Bank of China, has raised alarms about the strategic challenge posed by USD-backed stablecoins to China’s monetary system. The rapid growth of tokens like USDT and USDC, which processed over $27 trillion in settlements last year, risks undermining Beijing’s efforts to promote the renminbi in global payments.

Regulatory developments in the U.S. and Hong Kong are seen as reinforcing dollar dominance in digital payments. Wang urges accelerated development of China’s digital yuan (e-CNY) and proposes launching an offshore yuan stablecoin in Hong Kong to counter this trend.

The economist warns that without matching the efficiency and cost advantages of USD stablecoins, China’s currency internationalization efforts will face significant obstacles. His proposal includes integrating digital identity systems with digital currency infrastructure to enhance competitiveness.