July 2 Crypto News- How the U.S. Stablecoin Law Is Shaping China’s Crypto Future
July 2 Crypto News– Despite its ongoing ban on cryptocurrency trading and mining, China is signaling a potential shift in stance—at least when it comes to stablecoins. Speaking at the June Lujiazui Forum, People’s Bank of China (PBOC) Governor Pan Gongsheng said stablecoins could “revolutionize international finance,” especially as traditional payment systems face geopolitical risks such as sanctions.
Former PBOC head Zhou Xiaochuan echoed similar concerns, warning that dollar-backed stablecoins might accelerate “dollarization.” However, Chinese officials also floated the idea of yuan-based stablecoins as tools to expand China’s financial influence globally.
U.S. Regulation Spurs Chinese Debate
China’s renewed interest comes as the U.S. Senate passed a landmark bill to regulate stablecoins, aligning with former President Donald Trump’s crypto-forward strategy. U.S. Treasury Secretary Scott Bessent claimed stablecoins “could strengthen the dollar’s role,” citing the reliability of U.S. oversight compared to centralized systems like the e-CNY.
Economists now suggest Hong Kong could serve as a sandbox for offshore yuan-linked stablecoins. “Stablecoins are not new currencies, but new distribution channels,” said Robin Xing of Morgan Stanley. Companies like JD.com and Ant Group are preparing license applications under Hong Kong’s new regulatory framework.
Dual Strategy for Digital Finance
China is advancing a dual-track digital currency strategy—scaling both its central bank digital currency (e-CNY) and alternative tools like stablecoins via Hong Kong. Plans are underway for an international e-CNY hub in Shanghai, despite setbacks to projects like mBridge.
Cornell’s Eswar Prasad noted: “Without unifying onshore and offshore yuan markets, these stablecoins won’t gain much traction,” but added they might “catalyze reform.”
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
