In the summer of 2025, a term originally belonging to the cryptocurrency circle—stablecoin—is igniting an unprecedented fervor, simultaneously triggering the policy agendas and capital markets of Washington, Beijing, and Seoul. It is no longer merely a medium of exchange or a hedging tool in the world of digital assets but is rapidly evolving into a 'battleground' that affects great power rivalries and reshapes the international financial landscape.
From the acceleration of the (GENIUS Act) in the US Congress to China's tech giants using Hong Kong to seize opportunities; from South Korea ambitiously launching the 'Basic Law on Digital Assets' to Wall Street's frenzied pursuit of the stablecoin issuer Circle's IPO. A global competition around stablecoins has already begun, with the US, China, and South Korea becoming the core players in this new era currency war with distinctly different yet interconnected strategies.
America's full-scale offensive.
As the current hegemon of the global financial system, the US's attitude toward stablecoins has shifted from cautious observation to full-scale offensive, with a clear and grand goal: to seamlessly extend the dollar's dominance into the digital world and achieve 'digital dollarization.'
America's strategy is multidimensional. First, on the legislative level, the US Congress is vigorously promoting the (GENIUS Act), aimed at establishing a clear and unified regulatory framework for US dollar stablecoins. This legislation requires issuers to hold a 1:1 reserve of high-quality assets and to operate with a license, not only to protect investors but also to project a 'US standard' to the global market and provide a trust basis for the global expansion of US dollar stablecoins.
US Treasury Secretary Scott Bessent's optimistic expectations further inject a strong boost into this offensive. He publicly stated that it is 'very reasonable' for the stablecoin market to expand to over 2 trillion dollars in the next few years. In his view, every dollar stablecoin circulating on-chain is consolidating and strengthening the dollar's global position.
At the same time, the business community and capital markets have also given the warmest responses. E-commerce giant Amazon and retail leader Walmart are evaluating the issuance of their own stablecoins to bypass traditional credit card networks, significantly reducing annual transaction costs by billions of dollars. Meanwhile, the successful listing of US dollar stablecoin (USDC) issuer Circle on the New York Stock Exchange, with its stock price skyrocketing nearly sevenfold in just over a dozen days, has ignited Wall Street's enthusiasm, proving the capital market's extreme demand for compliant stablecoin issuers.
Legislation establishing standards, government endorsement of visions, enterprises seeking applications, and capital markets cheering—America is trying to leverage its first-mover advantage to inject the blood of the dollar into every capillary of the global digital economy, a revolution about 'pathways' rather than 'the currency itself' is quietly solidifying the dollar's hegemony.
China's strategic counterattack.
Faced with the strong impact of the US dollar stablecoin, there is a strong sense of urgency permeating China's political, academic, and business circles. From former central bank governor Zhou Xiaochuan to current governor Pan Gongsheng, as well as various national-level think tanks and brokerages, a consensus is forming: China cannot fall behind in this wave of digital currency and must respond actively.
However, China's response is filled with strategic wisdom from the East. Due to the strict regulation of cryptocurrencies in mainland China and the highly developed mobile payment system, directly issuing renminbi stablecoins domestically is not an urgent priority. Thus, Hong Kong has become the perfect 'firewall' and 'experimental field' for this strategic counterattack.
The (Stablecoin Ordinance) set to take effect in Hong Kong on August 1, 2025, provides a clear compliance path for global stablecoin issuers. This door first attracts China's own tech giants. Ant Group, the parent company of Alipay, and e-commerce giant JD.com have both announced plans to apply for stablecoin licenses in Hong Kong. Their motivations are very pragmatic: to use stablecoins to solve the pain points of high cross-border payment costs and low efficiency within their vast business ecosystem. JD.com founder Liu Qiangdong even envisions that JD stablecoins could become a global payment method in the future.
Behind these corporate actions is a grand national strategic vision—developing offshore renminbi stablecoins. Experts from top think tanks such as the Chinese Academy of Social Sciences and the State Council Development Research Center have all advised that China should seize the opportunity to support Hong Kong in taking the lead to pilot the launch of offshore renminbi stablecoins (CNHC).
The brilliance of this strategy lies in the issuance abroad, which can effectively isolate it from the mainland's capital control system. At the same time, leveraging the borderless nature of blockchain opens up a new, efficient digital path for the circulation and use of renminbi globally. Providing a non-dollar option in the global stablecoin market counters the trend of 'digital dollarization.'
Wang Yongli, former vice president of the Bank of China, bluntly stated that the stablecoin field has become a 'must-fight and bloodbath area', and China needs to adjust its policies to participate actively. From the central bank's joint launch of 'cross-border payment connectivity' with the Hong Kong Monetary Authority to the intensive voices of top entrepreneurs and economists, a layout aimed at using stablecoins for the internationalization of the renminbi is quietly unfolding in Hong Kong, this experimental field.
South Korea's self-reliant ambition.
In this game between the two powers of China and the US, South Korea, as an important economy, has also shown an unwillingness to fall behind. However, unlike China and the US, South Korea's strategy focuses more on 'internal defense' and 'self-reliant development.'
The ruling party in South Korea recently announced a major proposal called the 'Basic Law on Digital Assets', one of the core aspects of which is to establish a strict licensing system for stablecoin issuance. According to the proposal, all stablecoin issuers must obtain official permission and hold at least 500 million won (approximately 368,000 USD) in their own capital.
The strategic intent of this move is very clear: to encourage the development of stablecoins based on the Korean won and to avoid domestic funds flowing into the stablecoin market based on the US dollar or other foreign currencies. This is a fulfillment of the promises made during the presidential campaign, aimed at keeping the benefits of digital asset development domestically and building a self-reliant digital financial ecosystem centered around the Korean won.
South Korea's legislation, on one hand, synchronizes with the global regulatory trends of the US, Hong Kong, and other regions, demonstrating its determination to participate in global digital financial governance; on the other hand, it is also based on practical considerations to protect its national currency sovereignty and financial system. By establishing a 'Digital Asset Committee' directly under the president and imposing severe penalties on market misconduct, South Korea hopes to firmly grasp regulatory dominance while promoting open innovation.
The horn of competition has sounded.
From Washington's global layout to Beijing's leveraging of Hong Kong to go global, and to Seoul's focus on strengthening fundamentals, the strategic layouts of three major economies around stablecoins clearly outline the competitive landscape of the future digital financial world. The essence of this competition has long surpassed the technology itself and has evolved into a direct collision of national will, economic interests, and global influence. The US hopes to use this to continue its century-old monetary hegemony; China regards it as a historic opportunity to achieve the internationalization of the renminbi and challenge the existing order; South Korea seeks the best path for self-reliant development and the protection of national interests in the interstices.
Stablecoins, this digital product born out of blockchain, are bringing competition in the international monetary system into a whole new dimension in an unprecedented way. This competition has just begun, and its ultimate outcome will not only determine who will be the leader in the next digital financial era but will also profoundly affect the global economic order for decades to come.
