This development is prompted by the desire of Chinese authorities to adapt to digital assets, with stablecoins potentially playing a crucial role.
Regulators' Meeting in Shanghai
According to a Reuters report, the State-owned Assets Supervision and Administration Commission (SASAC) recently held a meeting with numerous government officials to discuss "strategic responses" to digital assets, including stablecoins. This marks a significant development, given that both crypto trading and mining are officially banned in China.
Corporate Giants' Influence
Chinese firms such as JD.com and Ant Group are reportedly seeking approval for yuan-backed stablecoins from the People's Bank of China. Corporate pressure could play a major role in any potential policy shift.
Comparison to the U.S. Crypto Market
The swift adoption of cryptocurrencies in the U.S. is also putting more pressure on China. During discussions, U.S. Senator Cynthia Lummis previously predicted a potential "arms race" in cryptocurrencies between the U.S. and China.
The discussions around stablecoins in China could indicate a potential shift in the regulation of digital assets. Shanghai, as the country's main financial hub, may serve as a platform for implementing new initiatives.
