Shanghai Regulator Considers Stablecoin Policy Shift
A Shanghai regulator stablecoins meeting this week marked a rare shift in China’s crypto narrative. The session, hosted by Shanghai’s State-owned Assets Supervision and Administration Commission, brought together local officials to explore policy options for stablecoins and digital currencies.
Photos showed 60 to 70 attendees discussing how China can better respond to global fintech trends. He Qing, the director of the commission, emphasized the need for sharper focus on emerging tech and deeper research into digital currencies.
Shanghai often leads China’s financial innovation, and this meeting could hint at future regulatory pilot programs.
Yuan-Pegged Stablecoins on the Radar
China’s top companies like JD.com and Ant Group are urging the government to back yuan-linked stablecoins. Their goal is to counter the growing dominance of U.S. dollar-pegged tokens. These firms plan to apply for stablecoin licenses in Hong Kong, where new regulations begin August 1.
Globally, stablecoins offer quicker, cheaper transactions and have gained traction with companies like Amazon and Walmart. China’s stablecoin exploration may follow a similar path, though full adoption could face hurdles.
Digital Currency Future Still Unclear
A Guotai Haitong Securities expert at the meeting explained the types and global regulation of cryptocurrencies and stablecoins. The session also covered key challenges and offered strategic policy suggestions for future digital currency development.
Meanwhile, Bitcoin surged close to $112,000 this week, highlighting the continued rise of digital assets worldwide. However, China’s central bank remains cautious. Governor Pan Gongsheng warned that digital currencies pose serious regulatory challenges.
Despite the 2021 crypto trading ban, the Shanghai regulator stablecoins discussion signals that change may be slowly approaching.
