China’s State-Owned Giants Dive Into Stablecoin Feasibility Study—Digital Yuan Rival Incoming?
Beijing’s corporate titans are probing a crypto pivot—and Wall Street’s watching.
The Sovereign Stablecoin Play
State-backed enterprises have quietly begun assessing a government-approved stablecoin, sources reveal. The move could reshape Asia’s digital economy—or die in regulatory purgatory.
Why It Matters
While China banned private crypto years ago, this signals a potential third path: controlled blockchain adoption. Think digital yuan, but with DeFi compatibility.
The Irony
Same players who once crushed mining operations now explore the tech they vilified. Typical finance—hate the game until you need the profits.
Is the Chinese government experiencing stablecoin FOMO?
On July 10, Chinese regulators held a meeting to reevaluate its stance on digital assets in the wake of stablecoin domination in many key parts of the world. As previously reported by crypto.news, the meeting came at a time when companies and experts are pushing for the government to approve yuan-pegged stablecoins.
Recent developments have made stablecoins the focus of several policy shifts, most recently in the United States and Hong Kong. In the U.S., the Guiding and Establishing National Innovation for U.S. Stablecoins Act or GENIUS Act recently received a majority approval vote from the Senate.
The bill just needs a majority vote from the House of Representatives in order to formally pass. The vote is scheduled to occur some time around the end of July.
Meanwhile, the Hong Kong special administrative region has made moves towards getting special licensing for firms interested in issuing stablecoins pegged to the Hong Kong dollar. Earlier this year, Hong Kong regulators agreed to pass the Stablecoin Ordinance, which will come into effect on August 1.
The EU had an earlier start with Market in Crypto-Assets Regulation or MiCA which provided a framework for stablecoin issuers to comply to if they wish to launch stablecoins for customers within the region.
