Former Deputy Governor of the Central Bank Li Bo: It is necessary to clarify whether stablecoins belong to currency or financial assets

ChainCatcher news, Li Bo, Vice President of the International Monetary Fund (IMF) and former Deputy Governor of the Central Bank, stated today during the Summer Davos that there are currently numerous regulatory experiments and explorations regarding digital currencies or stablecoins worldwide. Whether in the United States, Europe, or Asia, many countries are striving to establish appropriate legal and regulatory frameworks for stablecoins, but there are still many issues to be resolved. In this process, two core issues are particularly critical:

First, do stablecoins belong to currency or financial assets? Because the legal and regulatory requirements for the two are entirely different;

Second, if stablecoins are classified as currency, which level of currency do they belong to? Is it broad money M2, or cash-like M0? Different categories of currency require corresponding regulatory systems, including the establishment of mechanisms such as anti-money laundering.