Former PBOC Governor Warns of Stablecoin Financial Instability

China’s financial landscape is being rocked by a warning from former People’s Bank of China (PBOC) Governor Zhou Xiaochuan. Xiaochuan has issued a strong and controversial critique, highlighting the potential threat posed by stablecoins to financial stability. He emphasizes that these digital assets might encourage speculative trading rather than provide a steady anchor in the volatile cryptocurrency market, ultimately destabilizing broader financial systems. [Explanation of key concerns: Increased speculation, systemic risk from unregulated growth, undermining existing payment systems, etc.]