Chinese politician proposed to release stablecoin for Asia

by in Cryptocurrency News

China stablecoin

Shen Nanpeng, a member of the Chinese People’s Political Consultative Conference and Managing Partner of Sequoia Capital, has invited the government to issue stablecoins backed by a basket of fiat currencies. This is reported by Cryptobriefing.

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He came up with this initiative during a council meeting on Thursday, May 21. Four currencies are offered for use as stablecoin support: Chinese Yuan, Japanese Yen, Korean Won, and Hong Kong Dollar.

The digital currency is expected to simplify cross-border payments in the Asian region. It will reduce the costs of currency conversion and reduce the time of operations. In addition, stablecoin will serve as a working example for other national digital currencies.

Nanpeng added that stablecoin will help the region cope with the economic consequences of the COVID-19 pandemic by stimulating trade.

Recall that in August last year, the media reported on the readiness of China's national digital currency after five years of development.