Jiang Ming, deputy of the Institute of Economics and Finance at the Chinese Academy of Social Sciences, believes that stablecoins pegged to the US dollar enhance the dominance of the dollar in the international financial system, not Bitcoin or Ethereum. Ming pointed out the use of stablecoins in countries experiencing inflation and their role in providing liquidity in the DeFi ecosystem. He predicted that the approval of stablecoin regulations in the US Congress will strengthen their role. Ming suggested that China, to counter the dominance of the dollar, should release its own stable currency, expand the use of digital yuan, and encourage the testing of a special digital drawing right (e-SDR) at the International Monetary Fund level. He believes that e-SDR can thwart efforts to transform the dollar into the dominant currency in the digital currency ecosystem.
