Former central bank governor Zhou Xiaochuan: Stablecoins face risks of over-issuance and high leverage, and the argument for comprehensive tokenization to replace account-based payments is insufficient

ChainCatcher News: Former Governor of the People's Bank of China Zhou Xiaochuan published an article titled "Multidimensional Perspective on Stablecoins," which provides an in-depth analysis of the current state of stablecoin development and potential risks.

Zhou Xiaochuan pointed out that the central bank has two main concerns regarding stablecoins: first is the risk of "excessive issuance of currency," meaning that issuers may overissue stablecoins without having 100% real reserves; second is the high leverage amplification effect, where the operation of stablecoins after issuance may create a multiplier effect of currency derivation.

He believes that the current centralized managed account system still has good applicability, and the view of fully tokenizing to replace the account payment system lacks sufficient basis. Existing regulatory frameworks, such as the U.S. "Genius Act," relevant regulations in Hong Kong, and Singapore's regulatory provisions, have not satisfactorily addressed these issues.

Zhou Xiaochuan stated that although the market generally believes that stablecoins will reshape the payment system, objective assessments show that the cost optimization space of the current payment system, especially in the retail payment sector, is already very limited. He warned against the excessive use of stablecoins for asset speculation, as this deviation could lead to fraudulent activities and instability in the financial system.

The article also mentioned that obtaining a license and paying reserve funds does not equate to successfully issuing stablecoins. Without sufficient application scenarios, stablecoins may struggle to achieve effective circulation, potentially leading to a situation of "licensed but without coins." Whether stablecoins serve as temporary payment tools during transactions or as value storage means during specific periods will directly impact their market retention.