Professor Lijian SUN, Director of the FDFRC, believes that Stablecoins serve as a bridge but cannot bypass the existing monetary system management model. Their decentralized mechanism may trigger arbitrage, and the depth of capital account liberalization should precede the promotion of stablecoins. The current timing is not appropriate for advancing a RMB Stablecoin; hasty implementation would struggle to expand network effects and could potentially trigger crises.

China's advancement of digital currency requires building robust digital economies and financial systems, advocating “dislocation development” to establish interconnected consensus through “mbridge” mechanisms. The U.S. dollar leverages digital assets' “premium” to maintain credit, implicitly containing the ‘trilemma’ contradiction. Behind cryptocurrencies like Bitcoin, some issuers may exploit information asymmetry for excessive profits, what’s more, modern monetary systems lack a “Currency Anchor” in practical terms.

Translated by Yang ZHAO

Full text in Chinese available at:

https://fddi.fudan.edu.cn/58/dd/c18965a743645/page.htm