The Chinese central bank is concerned about the global financial dangers posed by digital currency. According to CNBC, Fan Yifei, a deputy governor of the People’s Bank of China (PBoC), voiced worries about the allegedly severe threat that stablecoins like Tether (USDT) represent to global banking and settlement systems.

The source underlined that the rate of development in private payment systems is extremely worrying and that the PBoC is striving to combat monopolies and disorderly capital expansion. Further adding that,

Some commercial organizations’ so-called stablecoins, especially global stablecoins, may bring risks and challenges to the international monetary system, and payments and settlement system, etc.

Related: Crypto Mining temporarily closed for self inspection in Sichuan Province

Fan stated that the Chinese government has already taken steps to curb the spread of global stablecoins in the nation. Last November, the Chinese government blocked Ant’s $37 billion IPO while simultaneously launching an antitrust investigation into Alibaba.

China has adopted a harsh stance on the cryptocurrency sector, lately resuming its crackdown on cryptocurrency mining and trade.

Mu Changchun, the PBoC’s head of digital currency research, subsequently stated that the primary goal of China’s central bank digital currency is to offer backup for major retail payment systems such as AliPay and WeChat Pay.

Since its inception in 2009 as the first use of blockchain technology, bitcoin has seen cycles of interest, with the most recent wave propelling it momentarily above $60,000 early this year.

However, in addition to warning against stablecoins, Fan attacked Bitcoin as well, claiming that such digital currencies have become speculative instruments and represent significant dangers to financial security and societal stability.

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