The city’s state asset regulator, SASAC, urged deeper research into digital currencies, marking a rare public engagement on the topic.

This renewed attention coincides with calls from Chinese tech firms and economists to develop a stablecoin tied to the yuan. While mainland China remains firm in its crypto restrictions, central bank officials are increasingly acknowledging the strategic importance of blockchain-based assets. In June, PBOC Governor Pan Gongsheng noted stablecoins could reshape international payments, a stance echoed in state media urging quicker action on yuan-backed tokens.

Hong Kong may serve as the testing ground for such an initiative. According to a PBOC adviser, the offshore yuan market makes the city a logical launchpad, given Beijing’s capital controls. State-backed companies like JD.com and Ant Group have already begun exploring digital yuan integration to rival U.S. dollar dominance.

Meanwhile, unconfirmed reports continue to swirl about China’s alleged accumulation of Bitcoin, potentially ranking it as the world’s second-largest state holder. These claims have resurfaced amid controversy over the FTX bankruptcy proceedings, where Chinese creditors are fighting to reclaim frozen assets. The FTX estate flagged China as a “restricted” jurisdiction, prompting objections from hundreds of affected users.

The post China Warms to Stablecoins as Pressure Mounts for Yuan-Backed Alternative appeared first on Coindoo.

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Filed under: Bitcoin - @ July 12, 2025 12:01 am