China may be reconsidering its stance on cryptocurrency. A recent meeting of the State-owned Assets Supervision and Administration Commission (SASAC) in Shanghai discussed a "strategic response" to digital assets, including stablecoins. This is a notable move, especially since China still currently bans cryptocurrency trading and mining.
Some factors that may drive this change:
• Pressure from the business community: Major corporations like (no links) and Ant Group are lobbying to be allowed to issue stablecoins tied to the yuan, with the approval of the People's Bank of China (PBoC).
• Global competition: While the U.S. is accelerating crypto acceptance and attracting large capital flows from institutions, China may want to maintain its financial position.
• Policy experimentation: Shanghai, as China's largest financial center, could become a testing ground for crypto-friendly policies.
Some other positive signals:
• Recognizing Bitcoin as an asset: Chinese scholars have acknowledged the asset properties of Bitcoin, arguing that it has economic value and can be recognized as an asset.
• Blockchain development: Officials have committed to promoting blockchain research for commercial and financial applications.
However, it is still unclear whether these moves will lead to a significant change in China's policy towards crypto.