Technology

China threatened by US stablecoins, G7 urged to tackle Lazarus Group: Asia Express

Posted on by Minakshi

China Raises Concerns Over US Dollar-Pegged Stablecoins, Citing Monetary Sovereignty

Growing Popularity of Stablecoins Poses a Challenge, Experts Say

Concerns are growing in China regarding the increasing adoption of stablecoins, particularly those pegged to the US dollar. Chinese academics are warning that the rise of these digital assets could potentially undermine China’s monetary sovereignty and further entrench the dominance of the US dollar in the global financial landscape.

Impact on Sovereign Credit and Global Governance

A commentary published in the China Economic Times, a prominent daily newspaper with strong ties to the Chinese government, highlights the broader implications of cryptocurrency proliferation. The piece suggests that the evolving digital currency landscape could significantly impact sovereign credit systems, existing global governance models, and the very future of money.

  • Growing stablecoin usage could challenge the control of central banks.
  • Reliance on the US dollar peg raises questions about national economic autonomy.
  • New technologies necessitate careful consideration of future economic policies.

Thailand’s Tourism Sector Faces Setback After Crypto Scams

Thailand’s tourism sector, a vital contributor to the nation’s economy, has experienced a significant downturn following a series of crypto-related scams. Tourist arrivals from China have reportedly dropped by a substantial 44%, indicating a potential erosion of trust and confidence among Chinese visitors.

Japan to Advocate for Action Against North Korean Crypto Hackers at G7 Summit

Japan is reportedly planning to urge G7 member nations to take coordinated action against North Korean cybercriminal groups, particularly the notorious Lazarus Group, which is known for its involvement in large-scale cryptocurrency heists. These funds are believed to be used to finance North Korea’s illicit activities.

The Lazarus Group and Crypto Theft

  • Lazarus Group is suspected of stealing vast sums of cryptocurrency.
  • These stolen funds may be used to support North Korea’s weapons programs.
  • International cooperation is crucial to combating cybercrime.
Summary:

  • Chinese experts are expressing concern about the impact of dollar-backed stablecoins on their monetary system.
  • Thailand’s tourism is seeing a drop from Chinese tourists following crypto scams.
  • Japan is pushing the G7 to address North Korean crypto hacking, led by the Lazarus Group.
Key Takeaways:

  • The rise of stablecoins presents complex challenges to established financial systems and requires careful analysis by governments worldwide.
  • Cryptocurrency scams can have a tangible and negative impact on tourism and international relations.
  • Cybersecurity threats, particularly those involving cryptocurrency theft, demand a coordinated international response to protect financial stability and national security.
  • India, with its growing digital economy, needs to carefully consider the implications of stablecoins and strengthen its cybersecurity infrastructure.