China is starting to look at the use of stablecoins to enhance operations in the public sector. This was the subject of the first public session in Shanghai, despite a general ban on cryptocurrencies.
First Public Session on Stablecoins in Shanghai
The Shanghai State-owned Assets Supervision and Administration Commission (SASAC) held a strategic meeting to discuss how state-owned enterprises could utilize blockchain technology, especially in international trade. This marks the first attempt to address stablecoins within an official regulatory framework in China.
Controlled Experiments in Blockchain
Discussions focused on asset digitization and supply chain optimization through blockchain. He Qing emphasized the need for a deeper understanding of emerging technologies and more thorough research on digital currencies. He highlighted that stablecoins should be viewed as sovereign financial instruments rather than investment assets.
Coordinated Strategy for Digital Yuan
Pan Gongsheng, governor of the People’s Bank of China, also publicly addressed the topic of stablecoins at the Lujiazui Forum. He acknowledged that blockchain is transforming international payments and speeding up money transfers between countries. Different regions in China are experimenting with various approaches to stablecoins, while Beijing observes international initiatives, including those from the US.
Thus, China is moving towards a cautious implementation of innovative financial technologies, viewing stablecoins as a means of observation and control, which may significantly impact the future of its financial system, including the development of the digital yuan.
