Li Lihui, the head of the Blockchain Research Working Group at China’s Internet Finance Association (NIFA), recently stated that stablecoins pose “trust risks” as it may be difficult to determine whether these coins are actually backed with real-world assets or fiat currencies such as USD.Lihui, the former president at the Bank of China, noted: “The market cap of certain stablecoins stands at over $1 billion, while smaller ones have a market value of hundreds of millions of dollars. But some banking accounts linked to stablecoins lack transparency … [which may introduce] trust risks.”
