Why has China suddenly started to pay attention to stablecoins? What strategic considerations are hidden behind this?
Recently, you may have noticed that Chinese officials and media have suddenly begun to frequently mention "stablecoins."
So the question arises: Didn’t they ban cryptocurrencies a long time ago? Why are they now focusing on stablecoins?
Don’t worry, there are several deep layers of logic behind this:
1. The dominance of the US dollar stablecoins makes China pay attention
Currently, the stablecoin market is almost entirely dominated by the US dollar—USDT, USDC, and other stablecoins led by the US account for 99% of the global market share, with a trading volume reaching $28 trillion in 2024!
The US is also actively promoting these stablecoins to be "legal and compliant," which is essentially using the "digital form of the dollar" to reinforce its dominant position in the global payment system.
In other words, stablecoins have become the representative of the "digital dollar." If China does not respond, it may be left behind in the future competition of digital finance.
2. China's policy shift, with the central bank also facing the reality of "stablecoins"
Although China completely banned cryptocurrency trading in 2021, did you know? In 2025, the governor of the central bank, Pan Gongsheng, directly stated: digital yuan + stablecoins can replace the traditional cross-border payment system.
Why?
Because traditional cross-border payments are not only slow and expensive, but also easily affected by geopolitical factors. While the digital yuan has undergone many pilot programs, it mainly remains for domestic use and is difficult to go overseas.
Stablecoins can just fill this gap.
3. Hong Kong becomes the "testing ground" for offshore RMB stablecoins
At this moment, Hong Kong plays a role:
In August 2025, Hong Kong's "Stablecoin Ordinance" is set to take effect, starting with US dollar and Hong Kong dollar stablecoins, followed by the launch of offshore RMB stablecoins, and preparing to utilize a 1 trillion RMB liquidity pool to test cross-border payments.
This is a clever move:
Hong Kong's market mechanism is more flexible
It has the status of an international financial center
It can bypass the main battlefield of mainland regulation and explore new pathways for RMB to go overseas.
Thus, China is looking for technological means + financial tools to break through, such as using RMB stablecoins to connect the global payment chain, improve settlement efficiency, and reshape international trust.
Follow me, and I'll help you understand the geopolitical financial battle behind stablecoins.
