China to Launch First Stablecoin via Hong Kong in Strategic Policy Shift

China is poised to approve its inaugural fiat-backed stablecoin through Hong Kong's new licensing framework, marking a pivotal shift in digital finance strategy. The move leverages Hong Kong as a regulated testing ground while maintaining mainland crypto prohibitions.

The Hong Kong Monetary Authority will issue limited licenses under a recent law permitting fiat-pegged token issuance. This controlled rollout reflects Beijing's broader ambition to expand the renminbi's global influence and reduce dollar dependence in digital commerce.

People's Bank of China Governor Pan Gongsheng has publicly recognized stablecoins' transformative potential in global finance. The initiative aligns with China's long-term currency internationalization goals, using Hong Kong's financial infrastructure to pilot controlled crypto innovation.