Shanghai Explores Stablecoin Pilots Amid China’s Crypto Ban

Shanghai's state asset regulator has initiated its first public study session on stablecoins and blockchain infrastructure, signaling potential pilots within city-run enterprises. The move occurs despite China's nationwide prohibition on cryptocurrency trading and mining.

He Qing, Director of the Shanghai State-owned Assets Supervision and Administration Commission, emphasized the need for heightened research into digital currencies during the closed-door meeting. Discussions centered on blockchain applications for cross-border trade, supply chain management, and asset digitization.

This development follows Shenzhen's recent warnings about stablecoin scams, suggesting a nuanced approach to digital assets. Observers interpret these actions as "tiered experimentation" rather than a relaxation of China's crypto stance, with state-backed initiatives carefully separated from speculative crypto markets.