According to Foresight News, former Vice Minister of Finance Zhu Guangyao shared his observations on recent developments in stablecoins during a closed-door seminar at the New Economist Think Tank (The Future of Stablecoins), interpreting the U.S. policy adjustments regarding stablecoins and proposing a policy path for our country to respond to stablecoins from a macro perspective after analyzing relevant data. Regarding how fiat-pegged stablecoins could impact the international monetary system and international financial order, Zhu Guangyao stated that stablecoins pegged to the U.S. dollar would usher in the third phase of the Bretton Woods system. Regarding what strategy China should adopt to respond to stablecoins, Zhu Guangyao believes there are three aspects to promote.
First, we must fully leverage Hong Kong Special Administrative Region's role as a testing ground for offshore markets. The Hong Kong (Stablecoin Regulation) will officially take effect on August 1 this year. As a window to the outside world for China, Hong Kong provides a critical platform to practice relevant measures. We must fully affirm and utilize this role of Hong Kong and strengthen policy communication between financial regulatory authorities in the mainland and Hong Kong, while firmly grasping this valuable opportunity.
Second, the core strategy for stablecoins must revolve around the renminbi. Whether it is offshore renminbi or onshore renminbi, we need to promote the establishment of stablecoins pegged to the renminbi. While supporting the Hong Kong banking system, we must incorporate renminbi stablecoins into the overarching design of the national financial strategy for overall planning.
Third, we need to closely observe the global usage of stablecoins pegged to fiat currencies, particularly in the following three areas. First, we need to closely monitor the implementation of the stablecoin legislation once it becomes law on August 1, as mentioned by Trump; second, we need to monitor the promotion of fiat-pegged stablecoins in different regions and countries; lastly, we need to observe the roles played by national authorities, regulatory bodies, and commercial institutions in the issuance of fiat-pegged stablecoins.