Why is China becoming increasingly interested in stablecoins #稳定币 , rather than Bitcoin #BTC ? The reasons are quite interesting.
1️⃣ Stablecoins have become the 'new favorite'
In recent years, China has maintained a 'high-pressure policy' towards cryptocurrencies, banning exchanges and mining altogether.
But now the trend seems to be changing slightly — not easing restrictions on Bitcoin, but quietly focusing on stablecoins, especially those pegged to the Renminbi.
Why?
Because the most widely used stablecoins globally are still the US dollar stablecoins (like #USDT , #USDC ), which puts pressure on China: if they don’t act soon, the digital finance space may be completely dominated by the US dollar.
2️⃣ Hong Kong is China's 'stablecoin laboratory'
Although mainland China is quite strict on cryptocurrencies, Hong Kong is already in the testing phase. They now allow compliant companies to issue 'fiat-backed stablecoins', provided that licensing is strict, the number is limited, and they are primarily used for commercial purposes, not randomly issued for personal trading.
This is equivalent to China using Hong Kong as a 'testing ground' without taking direct risks, to see how the market reacts.
3️⃣ The underlying anxiety: capital outflow
What China fears the most is — money being transferred abroad. Once assets like Bitcoin and USDT leave the country, they are hard to track. China seeks control, compliance, and a closed loop, so it is more inclined to develop its own Renminbi stablecoin.
This way, it can allow enterprises to participate in global digital payments while keeping funds within its own system, preventing the US dollar from taking dominance.
4️⃣ Cautious innovation exploration
This is not a 'big opening for crypto'; Bitcoin and Ethereum are still banned in China.
But through stablecoins, China is looking for a way to navigate 'between two extremes': neither fully embracing free crypto nor completely rejecting technological innovation.
It can be said that this is a game of control and the future financial landscape.
In summary: China's interest in stablecoins is not because it loves crypto, but because it wants to maintain the status of the Renminbi, avoid the US dollar’s digital assets from swallowing the market, while also exploring a path of 'innovation under control'.
With stablecoins, China is playing a very big game.
