Li Lihui: If the US Fails to Address Its Twin Deficits, the Stability of Its Stablecoins May Be Affected

According to a report by Jinse Finance, the "2025 International Monetary Forum" was held on July 27. Li Lihui, former president of the Bank of China, believes that stablecoins offer innovative financial convenience but also pose systemic financial risks. He stated that the United States seeks to tie stablecoins to the US dollar to maintain its global monetary and financial dominance. If the US fails to address its twin deficits, it may affect the stability of its currency. Additionally, he pointed out that Hong Kong stablecoins could be granted more relaxed domestic access under certain conditions to support the internationalization of the renminbi. He also emphasized the need to monitor developments in decentralized financial markets, particularly those led by the US, in order to enhance China's position in the global monetary and financial system.