Chinese authorities have instructed state-owned digital service providers and financial institutions to explore the feasibility of launching stablecoins pegged to the yuan, according to a recent report by the South China Morning Post.
Sources familiar with the matter say the government is evaluating the potential for yuan-backed stablecoins to be issued through state-owned enterprises. As part of this initiative, firms including financial services provider Guotai Haitong and the Shanghai Data Group have been tasked with conducting a feasibility study for a possible pilot program.
This directive reportedly stems from a meeting held last week by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC), which observers view as a potential easing of China’s previously strict stance on cryptocurrencies.
During the meeting, He Qing, director of the Shanghai SASAC, emphasized the importance for regulators and executives at state-owned firms to recognize the economic opportunities presented by emerging digital technologies, including digital currencies.
He encouraged these entities to actively research blockchain applications, particularly in areas such as cross-border payments, supply chain finance, and the tokenization of real-world assets.
“State-owned assets and enterprises will play an increasingly vital role in driving technological innovation, optimizing industrial structures, and enhancing national security,” He stated.
Is the Chinese government catching stablecoin FOMO?
On July 10, Chinese regulators held a key meeting to reassess the country’s position on digital assets, prompted by the growing global influence of stablecoins. As previously reported by crypto.news, the meeting coincided with increasing calls from experts and industry leaders for the government to greenlight yuan-pegged stablecoins.
Stablecoins have recently become a focal point of regulatory shifts worldwide, with notable developments in the United States, Hong Kong, and the European Union.
In the U.S., the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) recently passed the Senate with majority approval. The bill now awaits a vote in the House of Representatives, expected by the end of July.
Meanwhile, Hong Kong is making strides toward stablecoin regulation by introducing a special licensing regime for companies seeking to issue stablecoins backed by the Hong Kong dollar. Earlier this year, Hong Kong authorities approved the Stablecoin Ordinance, which is set to take effect on August 1.
The European Union has already moved ahead with its Markets in Crypto-Assets (MiCA) regulation, offering a comprehensive legal framework for stablecoin issuers looking to operate within the EU bloc.
