NEWS DIGEST – 20.08.2025
1) China weighs yuan‑backed stablecoins to push RMB global use
Reuters reports Beijing is preparing a roadmap for fiat‑backed CNY stablecoins, with implementation led by the PBoC and early focus on hubs like Hong Kong and Shanghai. This would be a sharp turn from the 2021 crackdown and a direct challenge to the USD’s dominance in on‑chain settlement.
Why it matters: If green‑lit, expect exporters and offshore trade desks to test CNY rails for faster settlement and fewer FX frictions. That could chip away at USDC/USDT share in Asia and tighten links between Hong Kong’s new licensing regime and mainland trade.
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2) U.S. Treasury leans on stablecoins as a buyer of T‑bills
The Financial Times says Treasury Secretary Scott Bessent is courting major issuers (e.g., Tether, Circle) as stablecoin reserves grow into a structural T‑bill bid—a way to help absorb larger bill issuance under the GENIUS Act framework.
Why it matters: A bigger, regulated stablecoin sector = deeper demand for short‑dated Treasuries. That tightens the loop between crypto and TradFi—and makes stablecoin policy a macro lever, not just a crypto niche.
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3) Tether hires Trump White House crypto adviser Bo Hines
The stablecoin giant brought on the former U.S. presidential digital‑assets adviser as a strategic adviser for stateside expansion. The move signals Tether’s push to influence U.S. policy and compliance while it scales beyond its core markets.
Why it matters: As Washington shapes stablecoin rules, Tether is stacking D.C. expertise. Expect more engagement on audits, reserves, and U.S. licensing—and potentially tighter competition with USDC on American rails.
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4) Hong Kong warns on “stablecoin‑label” market swings
The HKMA + SFC issued a joint statement cautioning investors about surges tied to rumors and unverified licensing claims, and reiterated that enforcement will be “forceful and decisive.”
Why it matters: Hong Kong wants to be a crypto hub—but with guardrails. Expect stricter messaging policing and faster action against misleading promotions as its Stablecoin Ordinance regime takes effect.
