Mu Changchun: Stabilizing the expansion of the currency to the global scale will magnify the challenges and risks of public policy

Mu Changchun, director of the Digital Money Institute of the People's Bank of China, said on the 10th at the "10th Caixin Summit: Open China and the World" that "the expansion of the stable currency to the global scale will magnify the challenges and risks of public policy. First, the application of global stable currency will weaken the fair competition in financial markets. Second, the global stable currency ecosystem has credit, maturity and liquidity mismatch and operational risks, which can exacerbate the vulnerability of the domestic monetary and financial sectors and exacerbate the crisis. Cross-border transmission; third, if global stable currency is used for payment, once a system disruption occurs, it will lead to market financial fluctuations and affect real economic activity.