IMF Adrian: Stabilizing coins should be linked to central bank reserves, and the People's Bank of China is likely to be the world's first CBDC

IMF financial adviser Tobias Adrian, the head of the department in the monetary and capital markets sector, said in an interview that the stable currency is tied to central bank reserves. In this respect, China has already taken the lead. The payment for Alipay and WeChat was required to be paid 100% to the central bank and stored on the central bank’s balance sheet in the form of reserves. Any stable currency must comply with AML/CFT requirements. It is not anonymous to the government, but it is still anonymous to individuals and businesses. Therefore, for the stable currency, we need to improve law enforcement to combat criminal behavior, while also ensuring anonymity between private individuals. Alipay is a form of digital cash, an account-based system, not a token. I think China will introduce tokens sooner or later. In many applications, the token solution is better than the account solution. China is a leader in financial technology, technology applications, and technological innovation. Therefore, the People's Bank of China will naturally become the first wholesale bank CBDC. The People's Bank of China believes that this issue should be promoted step by step, taking all potential impact into consideration and making the system safe enough. The central bank has always been the guardian of credit and stability. No matter what it does, the central bank must guarantee the credibility of the system. Therefore, I suggest that China should gradually and deeply think. In fact, even if China thinks twice, I think China is still likely to be the first big country to issue CBDC.