China is facing growing pressure from experts and policy advisers to consider the use of stablecoins for international payments.
Considerations on Stablecoins in China
Despite continuing the ban on cryptocurrencies, recent comments from senior officials at the People's Bank of China (PBOC) have reignited discussions about stablecoins. PBOC Governor Pan Gongsheng noted that stablecoins could 'revolutionize international finance,' particularly in a climate where traditional payment systems are vulnerable to sanctions.
Impact of US Efforts on China
The intensification of the US strategy in the crypto space has prompted China to reassess stablecoins. While China is discussing the possibility of its own stablecoins, the United States is advancing legislation to regulate stablecoins, which may strengthen the dollar's position in the global economy.
China's Digital Currency Strategy
Despite challenges in adopting the digital yuan, experts advocate for a dual-track strategy. The potential for conducting tests of stablecoins in the Hong Kong market is becoming a key topic. This strategy intends to integrate traditional means with innovative approaches to digital currencies.
China stands at a crossroads, choosing between cautious observation and active involvement in the development of international finance through stablecoin innovations.
