Zhou Xiaochuan: The US dollar stablecoin may assist in dollarization, and the impact of dollarization on the economy is highly controversial.

On June 18, Zhou Xiaochuan, former governor of the People’s Bank of China, said at the 2025 Lujiazui Forum that the most talked about stablecoin is the US dollar stablecoin. While there are other places that want to issue local currency stablecoins, it is “hard to say” what role they can play in the world, and US dollar stablecoins have the potential to have a global impact. Zhou Xiaochuan believes that US dollar stablecoins may assist in dollarization. The impact of dollarization on the economy is highly debated. Unless faced with high inflation, high debt, and other unavoidable circumstances, the possible side effects of dollarization are numerous. He reminded that when talking about the possible role of stablecoins in the future, we need to “have a string” in our minds, thinking about whether to engage in dollarization and the economic impact of dollarization on specific countries. (SSE News)