Wang Yongli: Stablecoins pegged to the US dollar still face many challenges, and not all of them are true.

Wang Yongli, former vice president of the Bank of China, said on the Sina Golden Unicorn Forum that issuing stablecoins in USD must have sufficient reserves, and the reserve assets can only be cash deposits in USD, short-term US Treasury bonds, or repurchase currency funds endorsed by central banks. US Treasury bonds are the largest component. However, there is a problem. If the market price of the Treasury bonds fluctuates, even if there is 100% reserve on the day of issuance, what if the price eventually drops? This is a challenge, and it is possible that there will be insufficient reserves in the future.