Former PBOC Governor Warns Against Stablecoin Adoption in China

Zhou Xiaochuan, former governor of the People's Bank of China, has voiced strong skepticism about the potential benefits of stablecoins for the country's financial system. Speaking at a closed-door session hosted by the China Finance 40 Forum, Zhou argued that fiat-pegged digital currencies could disrupt China's already efficient payment infrastructure rather than enhance it.

China's retail payment ecosystem—encompassing third-party platforms, the digital yuan, and various clearing mechanisms—operates at high efficiency with low costs. Zhou contends this leaves little room for stablecoins to deliver meaningful improvements. His remarks underscore Beijing's cautious stance toward private digital assets as it advances its central bank digital currency project.