Reference News Network July 13 report - According to the website of the UK's Financial Times on July 9, stablecoins are beginning to attract the attention of policymakers in mainland China. At the same time, Hong Kong is preparing to implement its stablecoin regulations on August 1. The city positions itself as a testbed to verify one of the crucial steps that may be vital for creating offshore circulation of digital yuan.
Currently, stablecoins denominated in US dollars account for more than 99% of the global market, reflecting the dollar's status as the default currency for international trade and financial settlements. However, a viable RMB stablecoin, especially stablecoins issued offshore through regulated Hong Kong entities, could potentially break this deep-rooted dependence on the dollar.
Some Chinese companies may benefit from these changes. For example, e-commerce giant JD.com and fintech company Ant Group are expected to gain new revenue streams from transaction fees, reserve earnings, and settlement services. They have the opportunity to shift from platform-driven growth to more stable and predictable income less affected by consumer cycles, while also helping to enhance the international status of the RMB.
According to the website of Singapore's Lianhe Zaobao on July 11, on July 10, the Party Committee of the Shanghai State-owned Assets Supervision and Administration Commission held a central group study session focusing on the development trends and response strategies of cryptocurrencies and stablecoins.
At the meeting, experts explained the development strategies and regulatory systems of stablecoins in various regions globally, analyzed the opportunities and challenges faced by stablecoin development, and proposed suggestions for the development of digital currencies.
Zhiqing He, Secretary of the Party Committee and Director of the Shanghai State-owned Assets Supervision and Administration Commission, stated that it is necessary to maintain a keen perception of emerging technologies and strengthen research and exploration of digital currencies.
Additionally, according to Reuters on July 10, a Chinese industry institution warned about the risks of illegal fundraising using new concepts such as "stablecoins."
The Beijing Internet Finance Industry Association released a statement on the evening of the 9th, stating that some unscrupulous institutions and individuals issue or hype so-called "virtual currencies," "digital assets," and "stablecoin investment projects," promising high returns, luring the public to invest in trading and speculation.
The association stated that these institutions or individuals use concepts such as "stablecoins," "decentralized finance," and "Web3.0" for packaging and hype, misleading investors. Such activities are prone to evolve into illegal fundraising, financial fraud, pyramid schemes, money laundering, and other criminal activities, seriously disrupting economic and financial order and infringing upon the property safety of the people.
The association reminded people to remember that "high returns inevitably come with high risks" and to stay away from unapproved "digital asset" investment projects. (Translated by Qing Songzhu)
Original: https://www.toutiao.com/article/7526380571866579482/
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