According to AInvest, some Chinese advisors are spreading the misconception that stablecoins will increase the power of the U.S. dollar, and that China should respond by developing a yuan-based stablecoin. This is like developing your own cancer to defend from someone else’ s cancer.
“Academic advisors, including Deng Jun and Zhang Shuyu, are influential in shaping these policies. China is considering alternatives like Chinese yuan-based stablecoins to counter the perceived threats from U.S.-backed digital currencies,” the website insists.
Deng Jun stated: “Stablecoins like USDT and USDC are a digital dollar shadow system. Their global expansion enhances dollar liquidity and influence. If left unchecked ... could erode China’s financial autonomy and deepen worldwide reliance on the dollar.” This trend could lead to significant regulatory changes worldwide, particularly if China’s influence encourages others to explore similar routes. Historical trends suggest stablecoins often challenge national currencies during periods of economic instability.
