Zhou Xiaochuan: Dollar Stablecoins May Assist Dollarization, Sparking Controversy Over Their Economic Impact

BlockBeats News, on June 18, former governor of the People's Bank of China, Zhou Xiaochuan, stated at the 2025 Lujiazui Forum that much of the current discussion centers around USD-pegged stablecoins. While other jurisdictions are considering issuing local currency stablecoins, their potential role on a global scale remains "difficult to say," whereas USD-pegged stablecoins may have a global impact. Zhou Xiaochuan believes that USD-pegged stablecoins could facilitate dollarization. The economic impacts of dollarization are highly controversial. Unless in dire situations such as high inflation or high debt, the potential negative side effects of dollarization are significant. He cautioned that when discussing the possible roles stablecoins might play in the future, one must "keep a string taut in the mind" to consider whether to promote dollarization and how dollarization might impact the economy of specific countries. (Shanghai Securities News)