Recent discussions in Shanghai conducted by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) have shown a shift in approach towards stablecoins, including potential yuan-backed solutions.
SASAC's Change in Stance on Stablecoins
He Qing, director of SASAC, emphasized the need for enhanced research into digital currencies. The latest meeting by SASAC, attended by both government and industry representatives, marked a signal towards a shift towards stablecoins.
Corporate Giants' Demands
Companies such as Ant Group and JD.com are advocating for a yuan-backed stablecoin, indicating an alternative to US dollar-linked stablecoins like USDC and USDT. This highlights the urgency in developing digital currency solutions.
Impact on China's Financial Sector and Economy
Potential policy changes could affect businesses and regulations within the financial sector. While stablecoin development may be on the rise, foreign stablecoins remain restricted, emphasizing a focus on domestic solutions.
The shifting approach in Shanghai towards stablecoins may lead to significant changes in the financial sector and corporate policies, which in turn could reflect on China's economic strategies.
