The head of the People’s Bank of China says that cryptocurrencies pose a threat to economic stability, much like a poorly forecasted typhoon. This suggests that Chinese regulators will continue to impose strict controls on Bitcoin, Ethereum, and other digital assets.

This statement follows the Chinese Ministry of State Security uncovering a foreign company that allegedly uses cryptocurrencies as a “cover” for collecting biometric data from citizens by scanning irises and other legally sensitive details. While officials did not disclose the company's name, the description bears resemblance to World, a project by Sam Altman, the founder of OpenAI, suggesting that he may be engaging in high-stakes endeavors.

The real focal point, however, is stablecoins, which the PBOC governor described as a “serious threat.” He argues that their creators often disregard customer identification protocols and fail to monitor for money laundering activities. The policymaker is concerned that these coins could make the global financial system more vulnerable and reduce developing countries' currency sovereignty. Meanwhile, neighboring Asian nations like South Korea have already launched their own regulated stablecoins (KRW1), marking a municipal sprint into the realm of cryptocurrency technology.