Despite a standing ban on cryptocurrency, China is showing renewed and significant interest in digital currencies, particularly stablecoins. This evolving sentiment is evident from both regulatory bodies and major tech companies, suggesting a potential shift in the nation's long-term digital asset strategy.
In a notable development, the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) recently convened a crucial meeting with local officials to discuss strategic responses to stablecoins and digital currencies. This gathering, attended by 60-70 individuals, signals a more open approach from a region often at the forefront of China's policy and regulatory pilot programs.
He Qing, head of the Shanghai regulator, emphasized the need for closer attention and increased research into new digital currency technologies. A policy expert from Guotai Haitong Securities provided insights into cryptocurrencies and stablecoins, global regulatory trends, and the inherent risks and opportunities, concluding with policy recommendations for digital asset growth.
Adding to this momentum, Chinese tech giants like JD.com and Ant Group are reportedly urging the central bank to permit Yuan-based stablecoins. Their aim is to create a domestic alternative to the dominant US dollar-backed stablecoins. Both companies are reportedly planning to apply for licenses in Hong Kong, where new stablecoin regulations are set to take effect on August 1st. This push by major corporations highlights the growing global interest in stablecoins, with companies like Amazon and Walmart in the U.S. also exploring similar projects.
However, navigating this evolving landscape in China won't be without challenges. Just last month, Pan Gongsheng, the central bank governor, issued a cautionary note regarding the significant regulatory hurdles presented by the rise of digital currencies and stablecoins. China's 2021 ban on crypto trading and mining was largely driven by concerns over financial stability.
Furthermore, a Chinese industry group recently warned investors about stablecoin-related scams. The Beijing Internet Finance Association highlighted that some groups are leveraging the hype around stablecoins to promote deceptive, high-return schemes disguised as financial innovation. They cautioned that such activities could quickly escalate into serious crimes like illegal fundraising, fraud, pyramid schemes, and money laundering.
Despite these warnings, the underlying interest in digital assets is undeniable. An index tracking stablecoin-related stocks in China has jumped 88% over the past three months, while a similar index in Hong Kong has more than doubled. This surge aligns with the broader global trend in digital currencies; Bitcoin, for instance, recently hit a record high of over $118,000, with many experts predicting it could reach $150,000-$200,000 by year-end.
This renewed focus from China's regulators and tech giants on stablecoins, coupled with a booming digital asset market, signals a fascinating period ahead for the global financial landscape.
July 2025, Cryptoniteuae