Imagine this: one moment, Chinese regulators are sipping tea and pondering stablecoins like they’re a delightful new biscuit variety. The next, they’ve tossed the whole tin out the window. Indeed, local brokers and think tanks have been instructed to cease all research or seminars promoting these digital darlings.
A Tale of Two Stablecoins: From Quiet Flirtation to Full-On Break-Up
This week, the Financial Times (FT) and Bloomberg provided a plot twist worthy of a Wodehouse novel. Despite China’s sweeping crypto ban and its ongoing rollout of the digital yuan, officials were quietly studying stablecoin models as tools to limit capital outflows and upgrade cross-border payments. It was a bit like Jeeves contemplating whether to dabble in jazz music-unexpected but intriguing.
Sources say regulators were weighing the potential efficiency gains against the danger of accelerating capital flight. Interest grew following Hong Kong’s new licensing framework for fiat-backed stablecoins, which took effect Aug. 1. Policymakers debated whether a state-backed token could tango alongside the central bank digital currency (CBDC).
But by Friday, Bloomberg reported that financial authorities directed mainland brokers, think tanks, and other groups to stop circulating research or organizing events tied to stablecoins. Concerns over fraud, illicit fundraising, and crowd-fueled speculation prompted this abrupt volte-face. It followed brisk OTC crypto activity-roughly $75 billion in trades during the first nine months of 2024-and a string of local risk alerts. One could almost hear the collective gasp from Beijing to Shanghai.
Still, the picture is not entirely closed. Bloomberg further noted that the People’s Bank of China (PBOC) Governor Pan Gongsheng recently acknowledged stablecoins’ potential to reshape global finance. Ah, the tension between strict domestic oversight and China’s ambitions to counter the U.S. dollar’s global influence is as palpable as Aunt Agatha eyeing Bertie’s latest escapade. The report’s authors, like those at the FT, cited “people familiar with the matter.” The move arrives amid renewed chatter over whether Beijing’s stance on digital assets is beginning to soften-a bit like Uncle Tom deciding he might fancy a cocktail after all.
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2025-08-08 21:22