Chinese State-Owned Enterprises Explore Launch of Yuan-Pegged Stablecoins

Chinese Government Directs State-Owned Firms to Study Stablecoin Launch

Chinese state authorities have instructed major state-owned digital services providers and financial entities to explore the feasibility of issuing yuan-backed stablecoins, according to a new report from the South China Morning Post. Sources familiar with the matter reveal that regulators are considering potential stablecoin initiatives as the global cryptocurrency industry continues advancing.

Yuan-Pegged Stablecoin Trials Under Consideration

To assess digital asset opportunities for China's economy, government officials have requested that prominent state-run companies, including financial giant Guotai Haitong and the Shanghai Data Group, initiate detailed research into pilot projects aimed at launching stablecoins pegged to the Chinese yuan. This move signals a possible shift in China’s approach to digital currencies and cryptocurrency regulation.

The directive was issued after a recent meeting hosted by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC), where officials discussed integrating advanced financial technology to support economic growth. At this event, He Qing, director of Shanghai SASAC, highlighted the importance of recognizing how emerging technologies like stablecoins and blockchain can drive innovation and strengthen the financial system.

Embracing Blockchain for Cross-Border Transactions and Asset Tokenization

He Qing encouraged state-owned enterprises to deepen their exploration of blockchain technology, especially in areas such as cross-border payments, supply chain finance, and the tokenization of real-world assets. The move reflects growing recognition that state-owned companies could play a pivotal role in driving technological transformation and reinforcing economic stability within China’s rapidly evolving digital landscape.

“State-owned assets and enterprises should take the lead in scientific innovation, industrial restructuring, and safeguarding economic security,” He stated.

Is China Catching Up with Global Stablecoin Trends?

The Chinese government’s renewed interest in stablecoin feasibility comes at a time when digital currency policy is being reconsidered worldwide. On July 10, local regulators met to review their stance toward cryptocurrencies, amid calls from industry experts and businesses to greenlight yuan-pegged stablecoins as stablecoins gain traction in international markets.

Significant development is also underway in other key regions. The United States recently saw the Senate pass the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), pushing the country closer to formal stablecoin regulation, pending a House of Representatives vote scheduled by the end of July.

Meanwhile, Hong Kong has made strides by enacting special licensing mechanisms for companies looking to issue stablecoins tied to the Hong Kong dollar. The city’s Stablecoin Ordinance is set to take effect on August 1, 2024. Europe, for its part, has pioneered comprehensive crypto regulation with its Market in Crypto-Assets (MiCA) framework, offering clear guidelines for stablecoin issuers seeking to serve EU customers.

As policies evolve and digital asset adoption accelerates, China’s increased focus on state-led stablecoin initiatives could have broad implications for both the national blockchain ecosystem and the global digital currency market.