What signal has the Shanghai State-owned Assets Supervision and Administration Commission released through collective learning on cryptocurrencies and stablecoins?
As of July 11, 2025, the latest developments in Shanghai regarding stablecoins can be anticipated as: 'The policy direction has shifted, the pilot framework has emerged, scenarios are locked in 'cross-border + supply chain', and state-owned enterprises are taking the lead.'
Brothers, do you remember before? It was a total ban, and now? They have taken the lead in beginning research? What signal has been released?
A few days ago, during a meeting, how did He Qing, the Secretary of the Shanghai State-owned Assets Supervision and Administration Commission, say? 'Strengthen the research and exploration of digital currencies including stablecoins,' and emphasized 'adhere to the integration of production and data, and explore the application of blockchain technology in cross-border trade, supply chain finance, and asset digitization.'
My goodness, there were sixty to seventy experts in attendance, all government officials; what does this level of attendance represent? The wind direction has changed.
From outright rejection and prohibition of the crypto sector to now beginning to embrace change and conduct research, this is a significant shift in stance; indeed, it's better to open up than to block.
I heard from my uncle, it's a rumor, that Shanghai plans to create a 'Shanghai Stablecoin Pilot Management Measures' within the year, which will include license admission and requirements for issuers of stablecoins, such as whether their funds are sufficient, whether they can comply with the law, and whether they can prevent money laundering. At that time, they will also build a digital asset trading platform.
According to Li Mingliang from Guotai Junan, the United States has the 'GENIUS Act' to promote a deep binding of stablecoins with the US dollar system, the European Union has the 'MiCA Regulation' requiring issuers of stablecoins to be licensed financial institutions, and Hong Kong's 'Stablecoin Regulation' will take effect on August 1. All of these provide some reference for our exploration of stablecoins in Shanghai.
By the way, why do we need stablecoins? This article by my uncle won't elaborate much on that; this is a good thing. My uncle truly hopes our country can develop stablecoins because although Tether's USDT has been widely used, it is mixed with too much dirty money.
Although Shanghai is attempting to find innovative breakthroughs within the policy framework this time, the national team's ban on cryptocurrencies has not been lifted, and the central bank still maintains a conservative policy. It is unlikely that there will be policies for trading cryptocurrencies in the short term; we can only conduct research for now. In case one day the restrictions are lifted, we won't be completely blind.
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