China's Stablecoin Shift: Shanghai Signals a Quiet Crypto Pivot

[nihalsari]

Despite China’s crypto ban, Shanghai is signaling a potential shift. Officials from the city’s state-owned assets regulator (SASAC) recently met to discuss stablecoin strategies, with director He Qing calling for deeper research into digital currencies. The move follows rising pressure from experts and major firms to develop a yuan-pegged stablecoin.

The People’s Bank of China is also weighing in. Governor Pan Gongsheng acknowledged stablecoins’ role in global payments, while state media urged fast-tracked development. PBOC adviser Huang Yiping even floated Hong Kong as a testing ground for offshore RMB stablecoins, due to mainland capital controls.

While crypto trading remains banned, stablecoins offer China a controlled entry point into blockchain finance — and a way to challenge the dominance of dollar-backed tokens like USDC. Quiet Bitcoin holdings and the FTX creditor controversy add fuel to speculation that China is already more involved in crypto than it admits.

The message is clear: stablecoins may be China’s way back into the game — on its own terms.