China’s Stablecoin Studies Hint at 'Tiered' But Fractured Approach

Key Points

1. The session, chaired by He Qing of the Shanghai SASAC, discussed how state-owned firms can utilize stablecoins despite China's crypto ban.

2. China's strategy is described as 'tiered experimentation,' focusing on controlled testing rather than broad crypto liberalization.

3. The meeting follows similar discussions in Shenzhen, indicating regional interest in stablecoins under strict regulatory oversight.

4. Observers note that successful proofs of concept could lead to broader adoption in other cities, though mainland governance remains cautious.

5. The approach aligns with Hong Kong's progressive stance on digital assets, while maintaining tight control under mainland policies.