Researchers at the People's Bank of China (PBoC) argue for the necessity of studying a Chinese yuan stablecoin
Analysis of Stablecoins
An article co-authored by a researcher from the PBOC and Li Liangsong, a professor at Fudan University in China, titled “Analysis of Stablecoins,” explores the current state of stablecoins pegged to the U.S. dollar issued around the world. The article introduces, among others, MakerDAO’s decentralized mortgage-stablecoin DAI issued in 2017, and more recently Gemini Dollar (GUSD) and Paxos Standard (PAX) supported by U.S. regulators.
The article is structured as follows:
- The rise and drawbacks of stablecoins
- The theoretical origins of stablecoins
- Analysis of the impacts and outlook for stablecoins
- China’s response
The authors argue that “the development of dollar-denominated cryptocurrencies (stablecoins) may strengthen the dollar’s dominant role in the global monetary system, while potentially negatively affecting other major fiat currencies.”
