Fan Yifei, Deputy Governor of the People's Bank of China: Bitcoin and stablecoins are speculative tools, digital renminbi users have reached 10 million

On the 8th, during the informal media briefing of the regular policy press conference of the State Council of China, deputy governor of the People's Bank of China, Fan Yifei, responded to questions related to virtual currencies by stating that digital currencies such as Bitcoin and stablecoins pose potential risks to financial security and social stability.

Deputy Governor of the People's Bank of China, Fan Yifei: Bitcoin and Stablecoins are Speculative Tools

Deputy Governor of the People's Bank of China, Fan Yifei, believes that Bitcoin and stablecoins fall under the category of private digital currencies. He mentioned in an interview:

"These currencies have become speculative tools themselves, and the market situation poses potential risks to financial security and social stability. They have also become payment tools for money laundering and illegal economic activities. So-called 'stablecoins' by some commercial institutions, especially global 'stablecoins,' may bring risks and challenges to the international monetary system, payment and settlement systems, etc. We are more concerned about this issue, so we have taken some measures."

This also responds to the actions of several financial institutions, including the Agricultural Bank of China, in June issuing statements to comply with government policies and not serve customers related to cryptocurrency transactions. Related news: Agricultural Bank of China and other institutions prohibit cryptocurrency trading customers

Private Digital Currencies Still Under Study, Strongly Promoting Central Bank Digital Currencies

Fan Yifei stated: "Regarding these private digital currencies, whether they exist as money credit, we are still observing and studying. At the same time, we need to vigorously promote central bank digital currencies."

Fan Yifei believes that wholesale central bank digital currencies issued to commercial banks are generally considered not to have an impact on financial stability, monetary policy, etc.; the key lies in the impact of retail central bank digital currencies on the monetary system, monetary policy, and financial stability when facing the public, which is still to be observed. However, they are confident in expanding the pilot program and will be implemented during the Beijing Winter Olympics. It is reported that there are already 10 million whitelisted users.