China’s Crypto FOMO Ignites as Beijing Trials Stablecoin to Supercharge the Renminbi
China's playing the stablecoin long game—and the market's biting.
Beijing's latest sandbox test puts the yuan on-chain, blending crypto agility with state control. No surprises here—when China moves, markets FOMO.
The digital yuan gets a DeFi twist
State-backed stablecoins could let China bypass dollar dominance while keeping capital controls intact. Talk about having your cake and eating it too—with blockchain frosting.
Meanwhile, Wall Street's still stuck debating whether stablecoins are securities. Slow clap for the regulators.
This isn't just about tech—it's financial warfare with extra steps. And if history's any guide, when China targets a sector, it goes all in. Buckle up.
China fears missing out on the stablecoin race
In the wake of Hong Kong’s Stablecoin Ordinance bill, many financial and commercial corporations such as JD.com, Animoca Brands and Standard Chartered have been looking to apply for issuer licenses.
Not only Hong Kong firms, Chinese institutions and businesses in the digital sector have also grown increasingly interested in gaining a stablecoin issuer license of their own. However, people familiar with the matter have confirmed that out of the four dominant state-owned Chinses banks, only one will receive a license from the Hong Kong Monetary Authority in its first batch.
So far, the HKMA has not said no to approving licenses for stablecoins backed by the renminbi.
Since early July, Chinese regulators have been in talks about softening the country’s stance on digital assets as stablecoin domination continues to advance on a global tier. At the time, companies and experts were pressuring Chinese regulators to issue yuan-pegged stablecoins.
Recent regulatory shifts have made stablecoins the focus of several global monetary developments, most recently in the United States with the GENIUS Act and Hong Kong with the Stablecoin Ordinance.
South Korean entities have also been vying for won-pegged stablecoins. South Korean digital payment firms KakaoBank and NaverPay have been two strong contenders that are interested in entering the stablecoin market.
Most recently, fanC and Initech have been the first to debut a Korean won-pegged stablecoin in an initial pilot. Though, it has yet to release the won-backed stablecoin publicly.
