You may have noticed recently:
More and more Chinese official media, experts, and financial leaders are frequently mentioning the term 'stablecoin,' which was highly sensitive in the past.
But the problem arises—
Wasn't cryptocurrency banned back in 2021? Why is there suddenly focus on 'stablecoins' again?
Don't rush; this matter isn't simple; there are three layers of deep logic hidden behind it:
🇺🇸 1. The strong rise of US dollar stablecoins, China must face it
You might not know—
Today's stablecoin market is almost monopolized by the US dollar.
USDT + USDC account for over 99% of the global stablecoin market value
The total trading volume in 2024 reached 28 trillion US dollars, far exceeding Visa and PayPal
The US government is promoting stablecoin legislative compliance, treating it as 'Digital Dollar 2.0'
This means:
Stablecoins are no longer just tools in the cryptocurrency world, but a vehicle for the 'digitalization of the US dollar.'
It is a key piece for the US to extend its hegemony and challenge SWIFT in the new financial system!
For China, if no action is taken, in the future, whether it is cross-border settlement, digital asset clearing, or the implementation of 'Belt and Road' projects, it may be suppressed by the 'US dollar stablecoin system.'
🧭 2. Slight change in policy direction: The central bank has already begun to layout the role of stablecoins
Although China banned cryptocurrencies in 2021, you might not have noticed:
👉 In August 2025, central bank governor Pan Gongsheng personally stated:
'Digital RMB + stablecoins can gradually replace traditional cross-border payment systems.'
Why has the attitude suddenly changed?
It's simple—traditional cross-border payments have three major pain points:
⚠️ High costs (transaction fees, exchange losses)
⚠️ Slow speed (starting from T+2)
⚠️ High risk (prone to sanctions and freezes)
Although the digital RMB has been planned for a long time, it is currently mainly piloted in a small domestic area, making it difficult to go overseas.
Stablecoins can just become this 'overseas intermediary layer.'
🧪 3. Hong Kong becomes a 'strategic testing ground': RMB stablecoins are quietly advancing
The key is coming:
It's hard for mainland China to directly handle 'stablecoins'; so what should be done? — Try it out in Hong Kong
✅ In August 2025, Hong Kong's (stablecoin regulatory regulations) officially came into effect
✅ First, allow Hong Kong dollar and US dollar stablecoins to apply for licenses
✅ Continue to promote the debut of 'offshore RMB stablecoins'
✅ Establish a 1 trillion RMB cross-border liquidity pool to create a global settlement network
This is a high-level chess game:
🇭🇰 Hong Kong has high freedom and a vibrant market mechanism
🏦 Again, it's an international financial center
🎯 It can also become a stronghold for the internationalization of the RMB
By issuing RMB stablecoins in Hong Kong, China can:
Avoid crossing the mainland regulatory red line
Testing implementation in global financial scenarios
It may even construct a 'non-US dollar settlement zone!'
💥 The stablecoin war is essentially a 'geopolitical battle for digital currency'
Today's stablecoins are no longer just tools for arbitrage in the cryptocurrency world.
It is becoming:
🌐 Extension of currency hegemony
💰 The future of cross-border payments
🧱 The cornerstone of the reconstruction of the new international order
China is quietly building a new position for the RMB in the global financial system using a mixed strategy of 'offshore promotion + central regulation + penetrating stablecoins.'
📌 Summary: Don't just focus on coin prices; understand the power of cryptocurrencies!
In the coming years, stablecoins will become one of the core battlegrounds of global digital currency competition.
US dollar camp: USDT/USDC is dominating global payments
China's camp: Digital RMB + offshore stablecoins are seeking to break through
Decentralized camp: DAI, LUSD, etc. attempt to establish independent stable systems
'Stablecoins are not stable; they are the most disruptive financial bombs.'
Keeping an eye on stablecoin dynamics is essentially watching a prelude to a digital financial cold war.
📌 Follow me for daily insights into the geopolitical games behind the facade of the cryptocurrency world.