🇨🇳 **Will China Lift the Ban on Cryptocurrency?**
China has begun testing CNY-backed stablecoins as a tool to strengthen control over capital flows within the country.
Current pilot projects are aimed at large investors and corporations.
China plans to allow the launch of its first stablecoins in Hong Kong in an effort to internationalize the yuan and compete with the dollar.
However, regulators fear stablecoins could become a loophole to bypass currency restrictions and accelerate capital outflows from China.
The main risk is opaque transactions or money laundering. The Chinese government will carefully study digital assets before committing to mass adoption.
👉 Low-impact now: China's stablecoin tests target controlled capital flows, not open crypto adoption; watch Hong Kong stablecoin regime for first licences.
