The 'Renmin University of China Shenzhen Social Science Salon (Issue 62) and the Great Financial Thought Salon (Issue 256)' held on June 21, hosted by the Shenzhen Research Institute of Renmin University of China and the Institute of Advanced Social Sciences of Renmin University of China (Shenzhen), co-hosted by the International Monetary Institute (IMI) of Renmin University of China and the Shenzhen Financial Institute of Advanced Study, featured in-depth discussions among experts and scholars from various fields on the theme of 'Global Stablecoin Development Trends and Policy Evolution.' The Renmin University of China Institute of Financial Technology has organized the core parts.
In the current booming digital economy, stablecoins, as an important innovation in the field of digital currency, are profoundly rewriting the global financial landscape. Since their first launch in 2014, the stablecoin market has rapidly expanded, with issuance mechanisms and application scenarios continuously evolving. On May 21, the Legislative Council of the Hong Kong Special Administrative Region passed the (Stablecoin Regulation Bill) in the third reading, marking a significant step for Hong Kong in formally incorporating stablecoins into the legal regulatory framework. In addition to Hong Kong, countries and regions such as the United States, the European Union, and Africa are also fiercely competing for dominance in stablecoins. Against the backdrop of the rapid development of global digital currencies, stablecoins and cryptocurrencies have become core topics of financial innovation and policy discussions.
To delve deeper into the above topics, the 'Great Financial Thought Salon' (Issue 256), initiated by the International Monetary Institute of Renmin University of China, invited several experts from government, industry, academia, and research to discuss the 'Global Stablecoin Development Trends and Policy Evolution.' Wang Yongli, Co-Chairman of Digital China Information Service Group Co., Ltd., and Zhu Taihui, Senior Researcher at the National Financial and Development Laboratory, shared their insights. Other participants included Xiao Geng, Chairman of the Hong Kong International Finance Society and Vice Dean of the School of Public Policy at The Chinese University of Hong Kong (Shenzhen), Tang Ke, Professor at the Institute of Economics of Tsinghua University and Dean of Zhishan College, Zeng Gang, Chief Expert and Director of the Shanghai Financial and Development Laboratory, and Tu Yonghong, Deputy Director of the International Monetary Institute of Renmin University of China and Dean of the Yangtze River Economic Belt Research Institute. The salon was hosted by Song Ke, Executive Vice President of the Shenzhen Research Institute of Renmin University of China and Executive Dean of the Institute of Advanced Social Sciences (Shenzhen).
Core Viewpoints
Wang Yongli gave a keynote speech titled (Deep Warnings from the Rapid Development of US Dollar Stablecoins). He pointed out that the emergence of US dollar stablecoins (such as USDT) is to meet the demand for trading crypto-assets, acting as a bridge connecting the crypto world and the traditional fiat currency system. With the development of crypto assets, stablecoins have rapidly expanded, but the long-term issue of being outside regulatory oversight raises concerns. He emphasized that regulated stablecoins are essentially fiat currency tokens rather than independent currencies, and their development highlights the inefficiencies of the fiat currency system. Countries need to learn from stablecoin technology to enhance the cross-border payment capabilities of legal tender. He suggested prioritizing the internationalization of the digital renminbi, combining digital identity technology to create competitive advantages, while actively participating in the overseas stablecoin market. Strengthening stablecoin regulation is a regulation of the use of cryptographic technology by national sovereignty, rather than an acknowledgment of the decentralized concept, and it needs to balance innovation and risk within a compliance framework.
Zhu Taihui believes that stablecoins combine the technological advantages of the underlying crypto assets with the value stability of fiat currencies, effectively addressing the incentive mechanism issues of market participants (achieving Pareto improvements for all parties). They have become a key tool linking fiat currencies with crypto assets, the cryptocurrency market, and the traditional financial system. The development trend of stablecoins is mainly manifested in the rapid growth phase of stablecoin scale, stablecoins becoming mainstream payment tools, and the accelerated integration of stablecoins with the traditional financial system. The continuous decrease in single payment scale of stablecoins indicates that stablecoin payments are rapidly expanding into cross-border trade and real transaction scenarios, with the integration of banking institutions and stablecoins opening up funding sources for stablecoin development. The US has created a new dollar cycle through US dollar stablecoins to strengthen the international position of the dollar. Introducing offshore renminbi stablecoins through a gradual model of 'first offshore (Hong Kong) - then domestic offshore (free trade zone)' is a new lever to accelerate the internationalization of the renminbi.
Xiao Geng believes that Hong Kong urgently needs to develop stablecoins to significantly reduce cross-border transaction costs and support the development of digital finance in Hong Kong. In terms of regulation, this stablecoin should be issued by licensed institutions, balancing market freedom while ensuring compliance. It is crucial for stablecoins to be pegged to the renminbi, as this can address the instability of the dollar system and create a relatively independent ecosystem without directly affecting mainland monetary policy. Moreover, stablecoins pegged to the renminbi can create a broad and efficient investment platform for renminbi assets, which, with its advantages of information transparency and traceability, can efficiently connect global capital with real assets in the mainland, facilitating the orderly relaxation of foreign exchange controls. This contributes to achieving 'hiding wealth among the people,' strongly supporting the renminbi and renminbi assets, enhancing national financial resilience and geopolitical status.
Tang Ke pointed out that currently, China should promote the Hong Kong dollar stablecoin while ensuring regulation, and more stablecoins should be issued for purchasing tokenized real-world assets (RWA) to support the ecological construction of the Hong Kong dollar stablecoin in the future.
Zeng Gang stated that from the essence of currency, stablecoins fall under the broad category of money. As digital assets become more widely accepted, it is not ruled out that they may replace sovereign currencies.
Tu Yonghong believes that as on-chain currency in the digital age, the rapid expansion of stablecoin trading is a result of growing market demand. The current international trade models, payment systems, and production organization methods have undergone significant changes, creating a huge demand to reduce transaction costs and break foreign exchange controls. Globally, the US dollar's safe-haven properties and the stability of the renminbi are the best. China's digital economy has a leading advantage globally. If central bank digital currency and stablecoins issued by private licensed institutions run in parallel, it will help promote the renminbi to more countries and international markets. It is suggested that stablecoins be used more in the renminbi offshore market, choosing Hainan Free Trade Port to explore the use of renminbi stablecoins in specific application scenarios.