Chen Yulu, deputy governor of the central bank: Global stablecoin will bring four macro policy challenges

On December 21, the 2019 Annual Conference of the China Institute of Finance and the China Finance Forum Annual Meeting were held in Beijing. Chen Yulu, deputy governor of the People's Bank of China, said at the meeting that more and more central banks and monetary authorities have begun to focus on stable currency versus currency Challenges to public policies such as sovereignty, capital controls, and payment system supervision.

The first is the impact on the payment system. The use of stablecoin may bring two challenges. On the one hand, stablecoins have great potential in reducing payment costs, but their transaction and payment information is independent of the existing payment system, and it will also bring challenges to the supervision of central banks and monetary authorities. On the other hand, the stable currency issuance mechanism is different from the central bank's currency issuance mechanism. Under the current balance sheet mechanism, whether it can fully assume the function of payment settlement is uncertain.

The second is the impact on financial stability. The stablecoin may weaken the effect of capital controls and affect domestic financial stability.

The third is the impact on monetary policy. The global stablecoin will impact the currency sovereignty of a country.

The fourth is the impact on the international monetary system. The international use of stablecoins, especially those that are anchored or mainly anchored to the US dollar, may further strengthen the dominant position of the US dollar in the international currency system and curb the development of the multipolar international currency system, including the internationalization of the RMB