Former Deputy Governor of the Central Bank Li Bo: It Is Necessary to Clarify Whether Stablecoins Are Currency or Financial Assets

According to a report by Jinse Finance, IMF Deputy Managing Director and former Deputy Governor of the Central Bank, Li Bo, stated during the Summer Davos that there are currently numerous regulatory experiments and explorations regarding digital currencies or stablecoins taking place worldwide. Whether in the United States, Europe, or Asia, many countries are striving to establish appropriate legal and regulatory frameworks for stablecoins. However, many issues remain unresolved. In this process, two core questions are particularly critical: First, should stablecoins be classified as currency or as financial assets? The legal and regulatory requirements for each are fundamentally different. Second, if stablecoins are recognized as currency, at which level of the monetary system do they belong? Are they part of broad money (M2) or cash-like money (M0)? Different categories of money require corresponding regulatory systems, including the development of mechanisms such as anti-money laundering.