🇨🇳 Shanghai Shows a Softer Side to Crypto: Could China Be Warming Up to Stablecoins? By ChainFabricNews

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Image source: Crypto Economy

In a surprising yet promising turn of events, Shanghai regulators are rethinking their stance on crypto—especially stablecoins. This could mark the beginning of a major policy shift in China, a country that has traditionally taken a hard line against cryptocurrencies since its 2021 ban. On July 11, 2025, more than 60 government officials gathered to discuss potential strategies around digital assets, including the possibility of launching a yuan-pegged stablecoin.

That’s big news—especially coming from a financial hub like Shanghai.

💡 So, What Changed?

For the past few years, China has been pretty strict about anything related to crypto. Mining and trading? Banned. Exchanges? Shut down. But now, some of China’s top officials are exploring how digital currencies—especially stablecoins backed by the Chinese yuan—could actually fit into the country's financial future.

This isn’t just talk. Officials reviewed stablecoin models from around the world and explored how China might introduce a digitally-backed yuan for international trade and finance.

🧠 Who’s Behind This Push?

Interestingly, it’s not just the government. Big tech giants like JD.com and Ant Group are reportedly nudging things forward too. They’ve been pushing for a chance to issue yuan-pegged stablecoins—first in Hong Kong, and eventually on a global scale. Their idea is pretty smart: start small with Hong Kong’s upcoming stablecoin licensing (set to roll out this August), and then expand into offshore yuan-based tokens.

For companies doing business across borders, this could be a game changer.

🌏 Why It Matters Globally

Today, most stablecoins—like USDT and USDC—are tied to the U.S. dollar. In fact, over 99% of all stablecoins are dollar-backed. That gives the U.S. a big advantage in digital finance.

China’s move could shake things up. If successful, a yuan-based stablecoin could offer international businesses an alternative to the dollar, boosting the global use of the renminbi (RMB). It’s not just about crypto—it’s about currency power in the digital age.

⚠️ But There’s Still Caution

Of course, China isn’t throwing open the doors to crypto just yet. Financial regulators are still very cautious. Pan Gongsheng, the head of China’s central bank, recently warned about the risks of digital currencies—from money laundering to financial instability. So, while the tone is shifting, full-scale adoption is still a long road ahead.

🏙️ Why Shanghai?

Shanghai has always been one of China’s most forward-thinking cities, often testing new financial policies before they go nationwide. That’s why this meeting was such a big deal—it could be the first step toward a broader acceptance of digital assets in the country.

🔮 What’s Next?

Here’s what to watch in the coming months:

  • August 1: Hong Kong’s new stablecoin regulations go live.

  • Late 2025: We might see early pilots of yuan-pegged stablecoins in cross-border trade zones.

  • Global impact: If successful, this could inspire other countries to launch stablecoins linked to their own currencies.

In short, China may not be diving head-first into crypto—but it's definitely testing the waters. And if things go well, this could reshape the future of global finance.

Stay tuned—this story is just getting started.

 

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