Zhou Xiaochuan: Stablecoins may assist dollarization, and the impact of dollarization on the economy is highly controversial

ChainCatcher news, according to Shanghai Securities News, former Governor of the People's Bank of China Zhou Xiaochuan stated at the 2025 Lujiazui Forum that the stablecoin being discussed the most now is the US dollar stablecoin. Although there are other places wanting to issue local currency stablecoins, their potential role in the global arena is still "hard to say," while the US dollar stablecoin could have a global impact. Zhou Xiaochuan believes that the US dollar stablecoin may assist in dollarization. The impact of dollarization on the economy is highly controversial. Unless faced with dire situations such as high inflation and high debt, the side effects of dollarization could be significant. He cautioned that when discussing the potential role of stablecoins in the future, one needs to "have a string in mind," considering whether to pursue dollarization and the economic impact of dollarization on specific countries.