China’s further crackdowns on cryptocurrencies? China’s central bank is worried about a group of currencies and has taken action

China’s central bank has expressed “major concerns” about the global risks of using some digital currencies, the portal said. Coindesk. This time she does not like the group of so-called stablecoins, i.e. cryptocene with minimal volatility, usually tied to government currencies or assets.

The most well-known stablecoin is currently Tether, the value of which copies the US dollar, and despite the controversy, it has long been ranked 3rd in trading volume, just behind the pair of the most famous digital assets, bitcoin and ethereum.

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Concern over this group of cryptms has recently been expressed by Deputy Governor of the People’s Bank of China, Fan Yifei, who has also indicated that the People’s Bank of China has also taken action against their use.

“The assets of certain commercial organizations, the so-called stablecoins, especially global stablecoins, can pose risks and challenges to the international monetary and payment system. We are very concerned in this area, so we have taken action. ” Yifei said.

What specific steps against stablecoin the bank took Yifei in a statement for local media did not specify, CNBC however, it reports that on Tuesday, a central bank branch in Beijing ordered a local company to close down and accused it of providing unapproved software services for cryptomen transactions.

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This is another step by the Chinese authorities towards the use of digital assets in the country. Only recently the country it struck sharply at the miners and shut down almost all major centers in its territory, which was also reflected in the steep fall in the value of bitcoin and other cryptocurrencies.

The answer is the digital yuan

Behind the Chinese authorities’ hostility to cryptocurrencies is its own cryptocurrency, the digital yuan that China is developing. However, the planned digital asset will be fully centralized and tied to the value of the classical Chinese yuan. From digital cryptocurrency, China promises cheaper and faster payments that will be free of anonymity.

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The digital yuan is currently in trial, with Fan Yifei saying that more than 10 million users have already tried the new system. The paradox is that even though China argues for international monetary stability in its stance against ordinary cryptocurrencies, it is being undermined by the forthcoming digital yuan.

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As he informs Coindesk, concerns about the long – term use of China ‘s digital currency have already been expressed by US President Joe Biden and his administration, who have announced that the digital yuan may have a detrimental effect on the dollar’ s position as a world reserve currency.

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