Mu Changchun: Once the global stable currency is launched, it will have an impact on the transmission of monetary 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 once the global stable currency is introduced, it will have an impact on the transmission of monetary policy. If global stable coins are widely used for value storage tools, residents and enterprises will hold assets with stable currency prices. Domestic monetary policy has limited impact on the yield of these assets, and monetary policy transmission will be weak. If the global stable currency pays interest, then the interest rate is determined by the basket currency, and the interest rate should be the weighted average of the basket currency interest rate, which will further weaken the transmission of the domestic monetary policy, which has a greater impact on the economy in which the local currency is not in the basket currency. . If the global stable currency and the local currency are freely converted, the stable currency interest rate will affect the determination of the domestic memory loan interest rate, further weakening the effectiveness of monetary policy transmission.