Chinese Bank Former President: Stablecoin Has an Innovative Role in Facilitating Finance, But Also Poses Systemic Financial Risks

Li Lihui, former President of Bank of China, stated at the "2025 International Monetary Forum" that stablecoins play a role in innovative financial convenience but also pose systemic financial risks.

He mentioned that the United States hopes to peg stablecoins to the US dollar to maintain global currency hegemony. If the United States cannot improve its twin deficits, it may affect the stability of its currency value. Additionally, he pointed out that Hong Kong's stablecoin can relax domestic access conditions when conditions are met, helping the internationalization of the RMB.

He also emphasized the need to track the dynamics of the decentralized financial market represented by the United States and enhance China's position in the global monetary financial system.