China Should Issue RMB Stablecoin, According To Influential Academic

According to influential academic Zhang Ping of the Chinese Academy of Engineering, an institution that provides policy consultation to the Chinese State Council, China should issue a digital yuan-collateral stablecoin to establish an on-chain payment system for China’s metaverse, as infrastructure developed by China itself is the key to ensuring national security.

In a speech at the 2022 World Artificial Intelligence Conference in Shanghai on Thursday, Zhang stated that Web 3.0 with a blockchain-based payment system will form the metaverse’s infrastructure and that China must dedicate its metaverse infrastructure to avoid “becoming the largest data producer while other countries master the core technologies and standards.”

His remarks contrast with China’s prohibition on using privately issued cryptocurrencies in the country. Zhang proposed that the Chinese central bank issue a crypto RMB for a metaverse payment system to “tighten the government-market alliance.”

According to Zhang Ping, the central bank might permit commercial banks to operate the stablecoin, beginning with a small trial project and gradually spreading to the entire country. He said that the metaverse involves national security issues such as sovereignty and ideology.

Zhang feels that Web 3.0, built on pure software-based protocols, has problems in regulation and control and that “in my opinion, the current Web 3.0 may not be acceptable for the existing system in China.”

Beijing is causing a stir about the metaverse, which was first discussed at the 2022 “Two Sessions” – the annual meeting of China’s major political bodies. The latest book by the Director of the China Securities Regulatory Commission delves into Web 3.0.

In a May article, the Chinese National Security Ministry-backed think tank said the metaverse could threaten national security.

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