China’s cautious exploration of stablecoins reveals a strategic balancing act between financial innovation and strict capital controls. The latest regulatory discussions emerge as Asian markets increasingly adopt digital asset infrastructure.
Shanghai regulators conducted closed-door meetings to evaluate stablecoin applications for state-owned enterprises, focusing on cross-border trade and supply chain management. The session, led by SASAC Director He Qing, emphasized research into blockchain-based financial technologies despite China’s broader crypto restriction.
The discussions follow Shenzhen’s recent warnings about stablecoin scams and coincide with PBOC Governor Pan Gongsheng’s first public remarks acknowledging stablecoin potential. Observers characterize China’s approach as “tiered experimentation” – permitting limited pilots while maintaining strict capital controls.
Phoenix Labs CEO Sam MacPherson notes this reflects China’s pattern of testing blockchain solutions within government-defined parameters. The strategy contrasts with neighboring Hong Kong’s progressive digital asset policies, though successful pilots could influence broader adoption.
Disclaimer
CryptoFeedHub Note: This article is a rewritten summary based on external reporting. Original source: Decrypt