Li Yang: Stablecoins have significantly different theoretical foundations and operating characteristics from traditional currencies, which will pose new challenges to the traditional monetary and financial system

On June 21, at the China Macroeconomic Forum (CMF) 2025 Mid-term Forum (No. 69) of Renmin University of China, Li Yang, a member of the Chinese Academy of Social Sciences and director of the National Finance and Development Laboratory, delivered a speech entitled "China's ever-enriching monetary policy toolbox". Li Yang said that from three aspects, the current environment for formulating and implementing monetary policy is becoming increasingly complex. First, domestic effective demand is insufficient, prices are low, and expectations are weak. Areas such as promoting economic growth, promoting scientific and technological progress, and improving income distribution are still under pressure. Secondly, the international "great changes unseen in a century" have accelerated the evolution, the process of globalization has stalled, geopolitical tensions, and the world pattern has entered fragmentation, multipolarization, and bilateralization, whether it is international economy, international trade, or international finance. Furthermore, stablecoins have passed legislative procedures in Europe, the United States, and Hong Kong, making the challenges posed by digital technology to current monetary, financial, monetary and financial policies, and even monetary and financial theories explicit.
Li Yang pointed out in particular that although there are many types of virtual currencies in existence, only stablecoins have entered the legislative process, which requires great attention. Stablecoins have significantly different theoretical foundations and operating characteristics from traditional currencies, which will pose new challenges to the traditional monetary and financial system.