Former Vice President of Bank of China: Legislation on the entire cryptocurrency asset should be accelerated, and financial institutions such as banks should be encouraged to speed up the on-chain process

ChainCatcher news, former Vice President of the Bank of China, Wang Yongli, stated that stablecoins are not an essential and irreplaceable factor for the operation of the on-chain crypto world. The legislation of stablecoins will inevitably promote the legislation of the entire crypto asset sector, which will profoundly impact the crypto market landscape and may even severely backlash against stablecoins.

The article analyzes that once the legislation clarifies the legality of stablecoins and crypto assets, banks and other payment institutions can connect with public chains or on-chain trading platforms to achieve on-chain deposits, supporting customers to directly convert off-chain fiat deposits into on-chain crypto fiat, thus replacing fiat stablecoins as a bridge connecting the crypto world and the real world. This will reduce the additional steps and costs for non-financial institutions engaging in the conversion between fiat and stablecoins. Wang Yongli suggested that China's focus should not be on developing a RMB stablecoin (as the space is quite limited), but rather on achieving a leapfrog development by accelerating the legislation of the entire crypto asset sector, encouraging banks and other financial institutions to move on-chain, actively promoting the development of RWA, attracting crypto exchanges to register or register in Hong Kong, and speeding up the on-chain operation of the RMB.