PBOC Governor Warns on Stablecoin Risks as Global Anxiety Builds

People’s Bank of China Governor Pan Gongsheng stiffened warnings on the risks around stablecoins, as the digital tokens usually pegged to fiat currencies stir more angst among officials around the world.

Pan said during a forum in Beijing on Monday that China would further develop its state-backed digital currency. But he made clear the unease felt by the PBOC over stablecoins, pointing to “prevailing views” he heard at the International Monetary Fund and World Bank meetings in Washington earlier this month from other central bankers and finance ministers.

Pan Gongsheng, governor of the PBOC.

Photographer: Qilai Shen/Bloomberg

“As a financial activity, stablecoins currently fail to effectively meet basic ...