Former PBOC Governor: Exploring Cryptocurrencies and Blockchain Technology, Key is User Experience Adaptation

On March 27, Zhou Xiaochuan, the former governor of the People’s Bank of China, stated at the Boao Forum for Asia Annual Conference 2026 that a good payment system is not just about being a champion in a single technology or performance. For instance, instant payment is not necessarily good; the most important factor is ‘adaptation.’ He pointed out that regulation must focus on anti-money laundering to prevent drug trafficking, cross-border gambling, telecom fraud, and other issues. Several central bank governors mentioned at the forum that digital currencies are now being used in payment systems, but fraud is also utilizing digital currencies, and ‘it is being used quite extensively.’ Zhou Xiaochuan believes that the capability to combat fraud still needs continuous improvement. When discussing regulatory adaptation, he reiterated the topic of stablecoins, stating that currently, once the proceeds from telecom fraud arrive, they are immediately split into hundreds or thousands of accounts to evade compliance checks, making it difficult to recover losses afterward. ‘Stablecoins fundamentally bypass compliance checks; everyone needs to think this through and not follow the trend blindly.’ Zhou Xiaochuan also emphasized that cryptocurrencies and blockchain technology can be explored, but it does not mean that ‘peer-to-peer’ and ‘decentralization’ are inherently positive. One cannot hastily conclude that using correspondent banks and SWIFT messages in the original backend systems is outdated; the key is to adapt to user experiences. (Caixin)