China Softening On Crypto? Shanghai Hosts Rare Digital Currency Policy Meeting

Shanghai's State-owned Assets Supervision and Administration Commission (SASAC) convened a notable meeting on stablecoins and digital currencies, signaling a potential shift in China's stringent crypto stance. The gathering, attended by 60-70 officials, emphasized the need for heightened sensitivity toward emerging technologies and deeper research into digital currencies.

This development follows lobbying efforts by tech giants JD.com and ANT Group, urging the central bank to authorize yuan-backed stablecoins. Hong Kong's impending stablecoin legislation, set to take effect August 1, adds further momentum to the regional crypto discourse.

While the meeting marks a rare official engagement with crypto topics since China's 2021 ban, significant hurdles remain. Strict capital controls and regulatory uncertainty continue to cloud the prospect of meaningful policy relaxation.