Zhou Xiaochuan: US dollar stablecoin may boost dollarization

PANews reported on June 18 that Zhou Xiaochuan, former governor of the People's Bank of China, said at the 2025 Lujiazui Forum that the US dollar stablecoin may have an impact on the global economy and assist dollarization to a certain extent. He pointed out that although some regions have tried to issue local currency stablecoins, their global role is still difficult to determine, while the US dollar stablecoin may have a wider impact.

Zhou Xiaochuan stressed that the impact of dollarization on the economy is controversial, except in special circumstances such as high inflation and high debt, dollarization may bring many side effects. He reminded that when discussing the future role of stablecoins, the potential impact of dollarization on the economy of specific countries should be fully considered.