Chinese officials have directed state-owned digital service providers and financial entities to examine the viability of introducing yuan-pegged stablecoins.
Per a recent South China Morning Post report, insiders indicate that government officials are currently concentrating on the prospect of stablecoin issuance, backed by the yuan, through state-owned enterprises.
The Chinese government directed state-owned entities, including financial services firm Guotai Haitong and the Shanghai Data Group, to begin studying the feasibility of a trial run for launching yuan-pegged stablecoins to explore this possibility.
The Shanghai State-owned Assets Supervision and Administration Commission’s meeting last week produced this decision. Many interpreted it as the country softening its firm stance against cryptocurrency.
At the meeting, Shanghai SASAC director He Qing emphasized that local regulators and state-owned company executives should recognize the opportunities the latest technological advancements offer, potentially strengthening the economy through digital currencies.
He also pushed state-owned groups to study blockchain technology deeply. He wanted them to focus on how it helps with international payments, managing money in supply chains, and turning real things into digital tokens.
“State-owned assets and companies will play a more significant role in scientific and technological innovation, industrial mix adjustments, and security support,” He stated.
China Explores Stablecoin Development Amid Global Trends
On July 10, Chinese regulators held a meeting to reevaluate their stance on digital assets, as stablecoins dominate many key parts of the world. As previously reported, the meeting happened when companies and experts were pushing for the government to approve yuan-pegged stablecoins.
Stablecoins have become the focus of several policy shifts recently, with notable developments in the United States and Hong Kong. In the U.S., the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, recently received a majority approval vote from the Senate.
The bill only needs the House of Representatives to pass a majority vote for it to become formal. They scheduled the vote for around the end of July.
Meanwhile, the Hong Kong special administrative region has taken steps towards obtaining special licensing for firms interested in issuing stablecoins pegged to the Hong Kong dollar. Earlier this year, the Stablecoin Ordinance was agreed upon by Hong Kong regulators, and it will come into effect on August 1.
The EU had an earlier start with the Markets in Crypto-Assets Regulation, or MiCA, which provided a framework that stablecoin issuers must comply with if they wish to launch stablecoins for customers within the region.
