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China’s growing focus on stableecoins is less about embracing crypto and more about defending his currency from US Dollar Dominance, says Dr. Vera Yuen from Hong Kong University’s Business School, which claims the shift highlights offshore options, but also deep domestic borders.
Peking’s shifts come when Washington moved first to create a regulatory framework for the stablecoin industry in the USA Reuters recently reported that China’s Council of State is undergoing a roadmap for Yuan-stacked StableCoins later this month, with Hong Kong and Shanghai expected to be a fixed-track.
In a previous interview, Animoca Group President Evan Auyang Coindesk told the trigger was the US genius law that cemented dollar-pointed tokens as part of the global finance.
He said the law is “to push China to act much faster,” Pushes Beijing to consider stableecoins not as speculative instruments, once described by People’s Bank of China, but as necessary infrastructure to keep up with global trade and settlement.
Yuen said the government first prioritized E-CNY, its central bank’s digital currency because it offered control, traceability and seigniorage surplus functions that regulators appreciated over those who are privately issued tokens. But she noticed that stablecoins have a clear edge in international use.
“Many CBDCs have been developed for domestic use, so for international use of CBDCs, there is a major problem with interoperability of different systems. Stableecoins are designed to be used internationally, so it can be a better opportunity for borderline transactions,” she said Coindesk.
“Focus on stableecoins allows China to respond proactively to global regulatory debates and technological advances, ensuring that it remains competitive and prepared as the landscape digital currency develops,” yuen continued.
Capital control still means that any yuan token will remain offshore, with Hong Kong’s new regime that delivers the test grounds. However, the Limited CNH liquidity emphasizes where the narrow runway is for China’s internationalization pressure.
“This would limit the issuance of offshore Renminbi stableecoins and limit its attractiveness as a means of payment,” Yuen said.
China also does not move in isolation.
In Japan, the Monex Group is preparing to issue a yen-stacked stablecoin tied to government bonds where he joins other domestic players such as SBI and JPYC.
Unlike China, where capital controls push experimentation offshore, however, Japan’s regulators lay the reason why stableecoins can circulate at home and signal Asia’s wider run to keep up with US dollar tookens.
Currently, Peking’s stablecoin experiment looks less as a replacement for e-cny and more like a cautious supplement, a way to expand Yuan’s reach abroad without loosening his grip at home.
Market movements
BTC: BTC held at $ 111K as Nvidia had a strong earnings.
ETH: ETH is shopping for $ 4,500, and history shows that a green August often goes ahead of a 60% end of the year, though typically after a September dip.
Gold: Gold traded Wednesday for $ 3,443 per Ounce, an increase of 1.6% from Tuesday’s closure, and extended a 37% year-over-year rally, although prices slipped into early trade as attention turned on the Nvidia earnings and Trump’s bold feud.
S&P 500: The S&P 500 rose 0.2% on Wednesday and pushed Wall Street to a new one all the time high in front of Nvidia’s earnings.
Other places in crypto
- Previous polymarket -Exec collects $ 15 million from Coinbase and USV to rival prediction platform (block)
- Finastra Taps Circle to bring USDC settlement to $ 5T global cross-border payments (Coindsk)
- Know Your Issuer ‘: This tech fights counterfeit coins starting with USDC and PYUSD (Decrypt)
