In his first tweet, he compared stablecoins to electronic cash stating that they have the same attributes.
“#Stablecoin are in essence electronic cash. They have the same attributes. The central bank issues the currency and then it is distributed peer-to-peer. The difference is it’s electronic. Today, the amount of cash in China’s domestic monetary system is not small,” tweeted Xu.
#Stablecoin are in essence electronic cash. They have the same attributes. The central bank issues the currency and then it is distributed peer-to-peer. The difference is it's electronic. Today, the amount of cash in China's domestic monetary system is not small.
— Star Xu (@starokcoin) October 10, 2018
In another tweet, he spoke about stablecoin strengthening the penetration of the US Dollar 100 fold.
“The dollar-pegged #stablecoin regulated by the US government will strengthen the penetration of the US dollar 100 fold,” he tweeted.
In his final tweet, he stated that with the help of technology the launch of the yuan-backed stablecoin is an inevitable trend.
“Embracing the tide of technology, the launch of a #CNY backed #stablecoin is an inevitable trend, and it will significantly improve the internationalization of the RMB. OKCoin USA will launch a fully compliant stablecoin,” tweeted Xu.
In a recent report by BC Focus, researchers from China’s central bank stated that the country should increase its efforts to promote stablecoins and even consider a yuan-pegged cryptocurrency.
In an op-ed titled “A Brief Analysis of Stablecoins” published in CN Finance, a bi-weekly magazine by the People’s Bank of China (PBoC) spelled out the case for stablecoins and how they can help counteract the volatility of cryptocurrencies.
Recently huge companies like Goldman Sachs, PricewaterhouseCoopers, GMO Internet Co., and others have have also come out in support of stablecoins.
Image via Shutterstock
Join our Telegram group