Chinese regulators are tightening control over stablecoin-related events and research due to concerns regarding fraud, while work on a yuan-pegged stablecoin continues.
Ban on Stablecoin Events
According to an August 8 Bloomberg report, Chinese financial regulators have instructed companies to cancel seminars and halt all research publications relating to stablecoins. This decision comes amid fears that stablecoins could be exploited for fraudulent activities. While authorities have yet to publicly issue a statement, the measures follow warnings from the Shenzhen Municipal Task Force for Preventing Illegal Financial Activities regarding the misuse of cryptocurrency terms.
Potential Launch of Yuan-Pegged Stablecoins
Despite the clampdown, recent reports indicate that discussions are ongoing in China concerning the potential launch of a yuan-backed stablecoin to counter the dominance of the U.S. dollar in global markets. Officials are seeking expert input on best practices for issuing and implementing such stablecoins. The stringent regulatory stance may be easing in light of growing interest in the asset class in other countries.
Digital Yuan Development
China is also actively working on developing its central bank digital currency, known as the digital yuan or e-CNY. PBOC Governor Pan Gongsheng has previously stated plans to establish an international operations center for the currency in Shanghai, emphasizing China's goal of creating a multipolar global currency system that is less reliant on the dollar.
Currently, there is no official confirmation regarding the launch of a yuan-backed stablecoin. However, the reported internal interest, along with signs of easing regulations, suggests that China's appetite for digital assets is growing.
