July 14, 2025
By Our Correspondent
In a significant change of tone for China, where cryptocurrency trading is prohibited, a Shanghai regulator reported that it convened a conference this week for local government representatives to discuss strategic responses to stablecoins and digital currencies, according to Reuters.
The Shanghai State-owned Assets Supervision and Administration Commission organized the conference on Thursday in response to calls from prominent Chinese enterprises and academics to create a stablecoin that is tethered to the yuan.
The director of the regulator, He Qing, told the gathering that we must have “greater sensitivity to emerging technologies and enhanced research into digital currencies,” according to a post on the organization’s official WeChat account.
Approximately 60 to 70 people attended the conference, according to photos.
China’s primary global financial center, Shanghai, frequently spearheads regulatory reform experimental projects.
According to Nick Ruck, head of LVRG Research, “China has the potential to be a key player in shaping the future of blockchain-based payments given its strong fintech ecosystem.”
Globally, there has been a lot of interest in blockchain-based stablecoins, which are usually based on fiat money and provide quicker and less expensive transactions. According to ARK Investment Management, stablecoins’ global transaction value last year was $15.6 trillion, more than Visa’s. The value per transaction is typically substantially higher, it was stated.
A growing number of businesses, like Amazon and Walmart, are considering introducing stablecoins in the United States, where the legal system is more advanced.
Although the central bank has warned that adoption should be gradual, South Korea’s new government has promised to permit businesses to deploy won-based stablecoins and build the required infrastructure.
According to reports, e-commerce company JD.com and fintech behemoth Ant Group are pleading with China’s central bank to approve yuan-based stablecoins in order to offset the increasing influence of cryptocurrencies connected to the US dollar.
In Hong Kong, where stablecoin laws are set to go into force on August 1, the businesses intend to apply for stablecoin licenses.
According to the regulator’s statement, a policy expert from Guotai Haitong Securities discussed the types, history, and traits of cryptocurrencies and stablecoins at the Shanghai conference. The expert also examined international regulatory frameworks and strategic approaches.
According to the post, the expert provided policy recommendations for the growth of digital currencies and discussed the chances and difficulties stablecoins face.
Separately, this week Yang Tao, deputy director of the think tank National Institution for Finance and Development, stated that China ought to investigate issuing stablecoins based on the yuan in both Hong Kong and the Shanghai Pilot Free Trade Zone at the same time.
According to market participants, China’s capital controls are expected to be a major obstacle to the growth of stablecoins, so any reform there may not be easy.
Pan Gongsheng, the governor of the central bank, also stated last month that the rise of stablecoins and digital currencies presents significant obstacles to financial regulation.
