Information regarding Yiwu merchants using stablecoins for payments remains contentious and unclear.
Despite rumors that over 3,000 merchants in Yiwu use stablecoins like USDT to receive payments with monthly transaction volumes exceeding 1 billion USD, the actual survey and feedback from stakeholders show a completely different situation.
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Most merchants in Yiwu do not accept or understand stablecoins.
Only a few merchants indicated they could accept stablecoins, but not for small orders.
Lawyers assert that stablecoins are currently not allowed for cross-border payments between China and foreign countries.
Do merchants in Yiwu actually use stablecoins like USDT for payments?
A real survey in the International Trade City of Yiwu shows that the majority of merchants "do not accept, do not understand, and have never heard of stablecoins." Only a few merchants indicated they could accept payments via stablecoins but do not use them for small orders.
Through conversations with staff and shop owners, it can be seen that the market here still primarily relies on traditional payment methods or cash. Previous media coverage has inaccurately exaggerated the potential for applying stablecoins.
Feedback from merchant associations and legal experts regarding payments with stablecoins
A representative of the local business association confirms that almost none of the members use stablecoins as a payment method. This opinion is based on a comprehensive survey and feedback from association members.
"Stablecoins have not been recognized for cross-border payment transactions in China, and this, along with the lack of understanding among businesses, severely limits their application."
Tran Van Minh, Financial Law Specialist, 2024
Lawyers emphasize that current regulations in China still prohibit the use of stablecoins in international transactions, therefore even if some merchants may use them on a small scale domestically, cross-border payments remain impossible.
Why did rumors about stablecoin transactions in Yiwu spread widely?
The main reason lies in the misunderstanding of the popularity of stablecoins in international trade, along with unverified news sources. Cryptocurrency transactions are often expected to facilitate quick international payments, but the actual pace in traditional markets still lags in recognizing this technology.
Yiwu is a large-scale trading center, but connections are largely still based on familiar payment methods such as bank cards, domestic e-wallets, or cash, rather than stablecoins. The participation of over 3,000 merchants in stablecoin payments is a number difficult to reconcile with the current situation.
Legal and technical risks when using stablecoins for international payments
Stablecoins are still not recognized by Chinese law for cross-border payment activities, resulting in high legal risks for businesses if they deliberately use them. Issues such as anti-money laundering and source of funds control are also significant challenges.
"The adoption of stablecoins in international payments requires a clear legal framework and widespread acceptance from parties, which is being refined in many countries."
Le Hoang Anh, Blockchain Expert, Vietnam Cryptocurrency Advisory Council, 2024
Blockchain technology can support efficient payments, but legal and financial safety factors cannot be overlooked. Businesses should be cautious and monitor official information from regulatory authorities before deploying stablecoins.
Comparing the acceptance of stablecoins in international trade markets
Market Stablecoin usage level Common payment methods Legal regulations Yiwu (China) Very limited, almost not used Cash, bank cards, domestic e-wallets Not allowed for cross-border payments with stablecoins Singapore Rapid growth in import-export businesses Stablecoins, fast bank transfers, e-wallets Legal framework is being improved, with pilot applications United States Popular in DeFi and some import-export businesses Stablecoins, financial technology solutions, international transfers Clear regulations in place, closely supervised
Frequently Asked Questions
Can merchants in Yiwu use stablecoins for payment of goods? Most do not accept stablecoins due to awareness and regulatory constraints, only a few can use them for large orders. Are stablecoins allowed for international payments in China? Currently, the law does not permit stablecoins for cross-border payments, creating difficulties for businesses. Why are there so many rumors about the popularity of stablecoins in Yiwu? Due to misunderstandings and unverified media coverage, the rumors are exaggerated. What risks do businesses face when using stablecoins illegally? Businesses may face administrative penalties, financial and legal risks due to regulatory violations. How can businesses track new regulations regarding stablecoins in China? They should update from official sources such as financial regulatory agencies and legal experts.
Source: https://tintucbitcoin.com/stablecoin-it-dung-tai-yiwu-thanh-toan/
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