🛑 China Sounds Alarm on USD Stablecoins

🔎 Guan Tao, former FX chief and current head economist at BOC Securities, cautioned at a SAFE-affiliated forum:


“Don’t mythologise stablecoins… stablecoins represent more of a technological rather than monetary innovation.”


He emphasized that while USD-backed stablecoins may streamline cross-border payments, they could also weaken monetary sovereignty—and China should tread carefully

🌍 U.S. vs. China: A Stablecoin Face-Off

* The U.S. is advancing its GENIUS Act, encouraging private USD stablecoin innovation.

* Meanwhile, China is advancing state-led digital alternatives and offshore yuan-based tokens.

* Experts view this as a geopolitical struggle: control vs. competition, currency dominance vs. efficiency.

🧠 What It Means for the Market

✅ China’s Motivation

* Protect sovereignty: USD stablecoins could erode RMB influence and challenge capital controls.

* Boost RMB intl’ use: Offshore yuan stablecoins and e-CNY can expand cross-border RMB usage.

* Leverage tech giants: JD & Ant’s stablecoin proposals aim to optimize trade finance and remittances.


🌐 Global Implications

* Expect a bifurcation: U.S. pushes private USD tokens, while China builds state-controlled alternatives.

* The outcome could shape the future of cross-border payment rails, digital currency adoption, and dollar supremacy.

Wang Yongli (ex–Bank of China):

“The global expansion of U.S. dollar stablecoins is

posing fresh challenges to yuan internationalisation’

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