Central Bank Governor: Stablecoins magnify loopholes in global financial regulation and impact the monetary sovereignty of underdeveloped economies

Pan Gongsheng, governor of the People's Bank of China, stated today at the 2025 Financial Street Forum Annual Meeting that stablecoins, as a financial activity, are currently unable to effectively meet basic requirements in terms of customer identity identification and anti-money laundering, magnifying loopholes in global financial regulation, such as money laundering, illegal cross-border transfers of funds, and terrorist financing. The market is full of hype and speculation, which increases the fragility of the global financial system and impacts the monetary sovereignty of some underdeveloped economies.