The post Former PBoC Governor Warns Against Stablecoin Risks appeared on BitcoinEthereumNews.com. Key Points: Zhou Xiaochuan warns about stablecoin risks and speculation. Emphasizes systemic instability potential. Concerns over inadequate regulatory frameworks. Former PBoC Governor Zhou Xiaochuan warned in a July closed-door meeting that stablecoins could incite speculation, potentially destabilizing financial systems. His remarks highlight concerns over stablecoins’ speculative risks, emphasizing insufficient regulatory frameworks globally, sparking debates on financial stability and potential market impacts. Zhou Highlights Speculation Risk in Stablecoin Market In mid-July, the former central bank governor, Zhou Xiaochuan, addressed stablecoin-associated risks at a private seminar held by the China Finance 40 Forum. Zhou warned of speculative practices that might threaten financial stability, emphasizing the potential for fraud and systemic collapse. Key concerns centered around stablecoins potentially being exploited for speculative gains, triggering market disruptions. Zhou’s comments suggest a need for vigilance and improved regulatory oversight as stablecoins gain more prominence, possibly impacting their use on speculative trading platforms. “We need to be vigilant against the risk of stablecoins being excessively used for asset speculation, as misdirection could trigger fraud and instability in the financial system.” — Zhou Xiaochuan No public statements have emerged from affected stablecoin issuers, but the remarks are expected to increase scrutiny from regulatory bodies across multiple jurisdictions. Zhou underscored risks stemming from inadequate asset backing directives abroad, calling for stricter control measures. Regulator Calls for Stricter Stablecoin Controls Did you know? Historical parallels exist with China’s prior prohibitions on cryptocurrency trading and mining in 2021, which shifted market activities to decentralized protocols, similar to how Zhou predicts current regulatory attention may steer stablecoin oversight. According to CoinMarketCap, Tether USDt (USDT) maintains its $1.00 peg, with a market cap of 167.24 billion and a trading volume that decreased by 5.24% in the past 24 hours. Price movements show a slight 1.64% increase over seven days, reflecting perceived stability… The post Former PBoC Governor Warns Against Stablecoin Risks appeared on BitcoinEthereumNews.com. Key Points: Zhou Xiaochuan warns about stablecoin risks and speculation. Emphasizes systemic instability potential. Concerns over inadequate regulatory frameworks. Former PBoC Governor Zhou Xiaochuan warned in a July closed-door meeting that stablecoins could incite speculation, potentially destabilizing financial systems. His remarks highlight concerns over stablecoins’ speculative risks, emphasizing insufficient regulatory frameworks globally, sparking debates on financial stability and potential market impacts. Zhou Highlights Speculation Risk in Stablecoin Market In mid-July, the former central bank governor, Zhou Xiaochuan, addressed stablecoin-associated risks at a private seminar held by the China Finance 40 Forum. Zhou warned of speculative practices that might threaten financial stability, emphasizing the potential for fraud and systemic collapse. Key concerns centered around stablecoins potentially being exploited for speculative gains, triggering market disruptions. Zhou’s comments suggest a need for vigilance and improved regulatory oversight as stablecoins gain more prominence, possibly impacting their use on speculative trading platforms. “We need to be vigilant against the risk of stablecoins being excessively used for asset speculation, as misdirection could trigger fraud and instability in the financial system.” — Zhou Xiaochuan No public statements have emerged from affected stablecoin issuers, but the remarks are expected to increase scrutiny from regulatory bodies across multiple jurisdictions. Zhou underscored risks stemming from inadequate asset backing directives abroad, calling for stricter control measures. Regulator Calls for Stricter Stablecoin Controls Did you know? Historical parallels exist with China’s prior prohibitions on cryptocurrency trading and mining in 2021, which shifted market activities to decentralized protocols, similar to how Zhou predicts current regulatory attention may steer stablecoin oversight. According to CoinMarketCap, Tether USDt (USDT) maintains its $1.00 peg, with a market cap of 167.24 billion and a trading volume that decreased by 5.24% in the past 24 hours. Price movements show a slight 1.64% increase over seven days, reflecting perceived stability…