Degen

Zhang Ming, deputy director of the Institute of Economics and Finance of the Chinese Academy of Social Sciences, believes that it is stablecoins pegged to the US dollar that contribute to the dollar’s ​​dominance in the international financial system, not Bitcoin or Ethereum.

Ming pointed to the use of stablecoins in inflationary countries and their role in providing liquidity in the DeFi ecosystem. He predicted that the passage of stablecoin legislation in the US Congress would strengthen their role.

Ming suggested that China should issue its own stablecoin, expand the use of the digital yuan, and encourage the testing of the digital Special Drawing Right (e-SDR) at the IMF level to counter dollar dominance. He believes that e-SDR could thwart efforts to make the dollar the most important currency in the cryptocurrency ecosystem.