As stablecoins become new infrastructure for international payments, can Hong Kong leverage its first-mover advantage to bridge the last mile for Renminbi digitalization going abroad?
On May 30, Hong Kong's (stablecoin regulations) officially took effect, almost simultaneously with the U.S. passing the (Guiding and Establishing the American Stablecoin National Innovation Act) (GENIUS Act). This seemingly coincidental timing actually reflects the accelerating push for the reshaping of global digital currency rules and the covert battle for international financial order.
In the context of global digital asset regulation shifting from chaotic growth to regulated standards, Hong Kong has keenly captured strategic opportunities and quickly built a legal framework. This not only provides legal support for Hong Kong's own digital asset ecosystem but also opens up institutional imagination space for the exploration of offshore Renminbi (CNH) stablecoins.
If Hong Kong can take the lead in piloting CNH stablecoins, it will not only be a technological innovation but may also become a digital accelerator for the internationalization of the Renminbi, redefining the future landscape of the cross-border payment system.
Stablecoins: Monetary Infrastructure in the Digital Age
Looking back at history, in 2003, Hong Kong launched a pilot program for personal Renminbi business, and six years later successfully laid the foundation for the Renminbi cross-border trade settlement framework, becoming the first stepping stone for the internationalization of the Renminbi. The success of that pilot relied on the innovative mechanism of "regulatory closed-loop + market-oriented transmission"—with Bank of China Hong Kong serving as the clearing center, and mainland China transmitting regulatory requirements to Hong Kong through commercial agreements, ensuring system stability and security while respecting market autonomy.
Today, this model may be becoming a reference template for the promotion of CNH stablecoins.
According to the latest (stablecoin regulations), the Hong Kong dollar stablecoin has been incorporated into a mandatory regulatory system, while flexible policy space has been reserved for non-Hong Kong dollar fiat currencies such as the Renminbi. Hong Kong is also exploring the deep integration of RTGS (Real-Time Gross Settlement) with on-chain clearing, aiming to consolidate its first-mover advantage in the digital finance sector through a "regulatory sandbox + tiered opening" approach.
CNH Stablecoins: The Digital Channel for Renminbi Internationalization
If CNH stablecoins can serve as a breakthrough point, Hong Kong may be able to open a digital payment network for the internationalization of the Renminbi that is independent of the SWIFT system. This could not only complement the shortcomings of CIPS (Cross-Border Interbank Payment System) in global layout but also occupy a place in the reshaping of the global payment system.
Recently, Pan Gongsheng, the Governor of the People's Bank of China, stated at a financial seminar: "Orderly advancement of the international use of the Renminbi, improving trade and investment facilitation levels." This statement has been interpreted as a shift in the policies for the internationalization of the Renminbi towards specific scenarios, with digital currency evidently being a key component.
The inherent attributes of stablecoins, such as efficiency, low cost, and resistance to geopolitical risks, make them an ideal vehicle for cross-border payments. Data shows that using on-chain settlement can compress the time for traditional cross-border transactions from T+1 to a few minutes, with costs reduced to 1/10 of traditional systems, making it particularly suitable for the small and medium-sized trade needs along the "Belt and Road". Meanwhile, through smart contract technology, stablecoins can achieve automated clearing and fund redemption, optimizing the liquidity management of the global 12 trillion RMB offshore fund pool.
More critically, stablecoins independent of the USD-dominated SWIFT network can provide a more resilient clearing channel for the Renminbi amid complex international situations.
Three-Step Strategy: The Future Roadmap for CNH Stablecoins
Referring to the experience of the personal Renminbi account pilot program from back then, the implementation path for CNH stablecoins can be roughly divided into three phases:
Phase One (2025-2026): Small-scale sandbox experiments. CNH stablecoins will be issued by licensed financial institutions from mainland China, primarily used for cross-border trade settlement within the Greater Bay Area, testing the on-chain clearing and compliance interaction mechanism.
Phase Two (2026-2027): Regional Expansion. Connect with mBridge (Multilateral Central Bank Digital Currency Bridge) and other cross-border payment projects to cover RCEP (Regional Comprehensive Economic Partnership) countries, achieving broader regional settlement. Meanwhile, explore the application of new asset scenarios such as bond tokenization (RWA).
Phase Three (2028 onwards): Global Promotion. Collaborate with international organizations such as the IMF (International Monetary Fund) to jointly establish technical and regulatory standards for stablecoins, promoting CNH stablecoins to occupy a place in global commodity trade and bulk commodity pricing.
If this three-step roadmap can be successfully implemented, the CNH stablecoin will not only become an important tool for the internationalization of the Renminbi but may also shape China's institutional competitiveness in the new global monetary order.
In the game of digital finance, how can Hong Kong break the deadlock?
Currently, the internationalization of the Renminbi still faces pain points such as low efficiency in cross-border payments and fragmented offshore liquidity. If the CNH stablecoin can successfully pilot, it will undoubtedly become an important link in solving these issues. However, the true determinants of success or failure are still two core factors.
The first question is whether it can successfully replicate the collaborative mechanism of "regulatory penetration + market selection," ensuring institutional constraints while stimulating market vitality.
The second question is whether it can seize the initiative in the wave of global rule reshaping and occupy a strategic high ground in the construction of digital financial infrastructure.
For this reason, this stablecoin experiment in Hong Kong is not just a financial innovation project, but a deep practice of institutional open reform. If successful, Hong Kong will not only open new channels for the internationalization of the Renminbi but may also gain a first-mover advantage for China in the global competition for digital currencies.
In such a situation, accurately grasping policy signals, market trends, and technological advancements can no longer be achieved solely through traditional information channels. More and more professional investors are starting to rely on AI investment research platforms like Mlion.ai, using their integrated news deep analysis, policy tracking, and on-chain data interpretation to gain early insights into potential opportunities and risks in the digital finance field.
As the global monetary order is being reshaped, stablecoins as a new strategic high ground may become the key battle that determines the future landscape. Hong Kong is attempting to use (stablecoin regulations) as a starting point to deliver a unique answer for Chinese-style digital finance.
Disclaimer: The above content is for information sharing only and does not constitute any investment advice! Investing involves risks, and caution is advised when entering the market.