As major economies around the world increasingly view stablecoins as a strategic new track, a silent competition surrounding digital currencies has already unfolded. As the United States, the European Union, and others compete to introduce regulatory frameworks to seize the initiative, China's moves appear particularly noteworthy and complex. According to various foreign media reports, relevant Chinese departments have quietly gathered experts in the field in recent months to conduct in-depth discussions on issuing stablecoins pegged to the Renminbi.
This move creates a seemingly contradictory tension with the strict regulatory policies on virtual asset trading within the country. However, it actually hides a well-thought-out national strategy: to prevent the potential risks that uncontrolled digital assets pose to the financial system while seizing the historical opportunity presented by blockchain technology, creating a brand new 'digital ark' for the internationalization of the Renminbi.
So, why is China testing stablecoins at this time? Who will ultimately build its technological foundation? A competition for blockchain infrastructure led by the 'national team' has quietly begun.
Testing Stablecoins
China's exploration of stablecoins is not a spur-of-the-moment decision, but arises from a profound insight and long-term consideration of changes in the global financial landscape.
1. Addressing Challenges from the Dollar System
Currently, the global stablecoin market is dominated by Tether (USDT) and Circle (USDC), which are pegged to the US dollar. This means that in the rapidly developing digital economy, the influence of the dollar is being further solidified and extended. A deeper consideration is that traditional cross-border payment systems like SWIFT have the potential to be used as limiting tools under specific geopolitical contexts. Therefore, exploring the issuance of a stablecoin backed by the Renminbi is seen as a possible path. Its strategic intent is to establish a high-efficiency cross-border payment network separate from the existing system, especially in supporting trade settlements in countries along the 'Belt and Road', enhancing the convenience and attractiveness of the Renminbi in global trade.
2. The 'Chinese Characteristic' Exploration Path
The inherent attributes of stablecoin technology create a natural tension with China's demand for 'prudent management' of the financial system. According to informed sources participating in the discussions, the People's Bank of China and other regulatory agencies hold a highly cautious attitude towards the potential impact of stablecoins on cross-border capital flow management. The 'decentralized' characteristics of blockchain technology mean that the flow of funds cannot be completely controlled by a single entity. However, any stablecoin project approved in China must comply with its 'specific national conditions'. This also explains why China's exploration is not simply a replication of global public chain models like Ethereum, but rather a tendency to develop a public infrastructure guided by the state, with multiple participants, but ultimately 'independently controllable'.
3. Hong Kong as a 'Testing Ground'
In this context, Hong Kong's role is crucial. Hong Kong is actively launching a regulatory framework for stablecoins, attracting many institutions, including JD.com and Standard Chartered Bank, to apply for licenses. The Hong Kong Monetary Authority (HKMA) has also not ruled out the possibility of approving stablecoins pegged to the Renminbi. This makes Hong Kong an ideal 'regulatory sandbox' and 'testing ground'. Here, China can test the issuance of stablecoins linked to offshore Renminbi (CNH) in an environment that aligns with international standards but is manageable in terms of risk, accumulating regulatory and operational experience without directly affecting the financial stability of the mainland.
'National-level' Public Chain
The issuance of any stablecoin is inseparable from a secure and efficient underlying blockchain network. Since blockchain was elevated to a national strategy in 2016, a blockchain infrastructure map led by the 'national team' has taken shape. Among many competitors, the following four platforms are considered the most promising, serving as the technological foundation for China's stablecoin vision.
1. Blockchain Service Network (BSN): Global Connector and 'Non-token' Concept
The BSN, jointly initiated by the National Information Center, China Mobile, China UnionPay, and others, is positioned as a global public blockchain infrastructure. Its core innovation lies in the unified adaptation and management capabilities of dozens of mainstream blockchain underlying frameworks worldwide, akin to a universal 'operating system' for the blockchain world. However, BSN has always firmly advocated the concept of 'non-token public chains', with its executive director, He Yifan, CEO of Hongzao Technology, repeatedly expressing extreme aversion to virtual currencies. This idea may become a significant constraint on its ability to carry stablecoins in the form of native tokens.
2. 'Spark·Chain Network': Supported by the Ministry of Industry and Information Technology, Focused on the Industrial Sector
The 'Spark·Chain Network', led by the China Academy of Information and Communications Technology, is a national-level new type of integrated blockchain infrastructure. Its application scenarios are highly focused on the industrial internet, such as product traceability and supply chain collaboration. It is a permissioned public blockchain network and also has no token design. Its focus on specific industries makes it potentially more suitable for carrying stablecoins for specific purposes rather than general payment types.
3. Chang'an Chain (Chain Maker): The 'Chosen One' Backed by State-owned Enterprises and Tech Giants
'Chang'an Chain' has a brilliant background. Its ecological alliance is guided by the Beijing municipal government, with members covering key state-owned enterprises in essential sectors such as the State Grid and China Construction Bank, as well as tech giants like Tencent and Baidu. It has been mentioned multiple times in the Beijing government's work reports and development plans. Technically, it claims that its transaction throughput capability (TPS) can reach up to 100,000. More importantly, its R&D institution, Microchip Institute, signed a strategic cooperation agreement with the Central Bank's Digital Research Institute in 2021 to jointly promote enterprise-level applications of digital Renminbi based on 'Chang'an Chain'. This gives it an unparalleled natural advantage in the application of stablecoins in inter-institutional or specific scenarios.
4. Conflux: The 'Lone Seedling' of Public Chains under Regulatory Exception
In contrast to the obvious alliance chain characteristics of the first three, 'Conflux' is currently the only public chain in China operating within a regulatory framework that has a native token (CFX). It is led by Turing Award winner Academician Yao Qizhi as chief scientist, with core team members from Tsinghua University's 'Yao Class', boasting strong technical capabilities. More importantly, Conflux is actively collaborating with fintech company AnchorX to explore the issuance of a stablecoin pegged to offshore Renminbi (AxCNH) to meet cross-border payment needs. This clear strategic layout gives it a valuable first-mover advantage in the international stablecoin arena.
Dual-track Parallel
In addition to the few blockchain networks with strong backing mentioned above, there are several alliance chains in the domestic market such as State Grid Chain (State Grid), Unicom Chain (China Unicom), Mobile Chain (China Mobile), Industrial and Commercial Bank Chain (ICBC), Ant Chain (Ant Group), Zhixin Chain (Tencent), and Zhongxiang Chain Network. Most of these alliance chains are also initiated by state-owned enterprises or tech giants, possessing unique advantages and influence in their respective fields.
But returning to the initial question, does China have a public chain with international influence? As of now, the answer should be absent. The main reason is that most Chinese blockchain networks are alliance chains, with significant differences in consensus mechanisms and economic models compared to overseas public chains like Ethereum and Solana.
In summary, China's path for stablecoins is unlikely to lead to a 'winner-takes-all' scenario, but rather a dual-track parallel development path where each plays its role.
Facing the international market, Conflux may lead the way. With its internationally accepted public chain attributes, existing token ecosystem, and clear offshore Renminbi stablecoin exploration plan, Conflux is most likely to become the vanguard for China's stablecoins to 'go global' and participate in global competition.
Based domestically, Chang'an Chain (Chain Maker) has immense potential. Leveraging its strong ecosystem of state-owned enterprises and tech giants, along with deep cooperation with the digital Renminbi system, 'Chang'an Chain' is highly likely to become the technological foundation for Renminbi stablecoins in domestic enterprise applications, B2B payment settlements, and other scenarios.
The competition surrounding the technological foundation of stablecoins is essentially not about replicating a Chinese version of Ethereum, but rather about creating a digital financial infrastructure that meets national strategic needs, serves the real economy, and is independently controllable. The curtain on this great power chess game has just begun to rise, warranting sustained attention from global markets.