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

On July 27th, Li Lihui, the former President of Bank of China, stated at the "2025 International Monetary Forum" that stablecoins play a role in providing innovative financial convenience while also presenting systemic financial risks. He noted that the United States hopes to link stablecoins to the US dollar in order to maintain its global currency hegemony. If the United States fails to improve its twin deficits, it may have an impact on the stability of its currency value. Additionally, he pointed out that Hong Kong's stablecoin can relax domestic access conditions when the appropriate conditions are met, which will assist in the internationalization of the RMB. He also emphasized the need to monitor the dynamics of the decentralized financial market represented by the United States and enhance China's position in the global monetary and financial system.