Chinese officials have ordered state-owned digital service providers and financial entities to study the feasibility of launching yuan-pegged stablecoins.
According to a recent report from South China Morning Post, insiders say that government officials are currently focusing on the possibility of launching yuan-backed stablecoin issuance through state-owned firms.
In order to test out the possibility, the Chinese government has asked state-owned entities, two of which are financial services firm Guotai Haitong and the Shanghai Data Group, to start studying the feasibility of a trial run to launch stablecoins pegged to the yuan.
The decision came about as a result of a meeting held by the Shanghai State-owned Assets Supervision and Administration Commission last week, which was considered by many as a softening of the country’s hard stance against cryptocurrency.
At the meeting, Shanghai SASAC director He Qing said local regulators and state-owned company executives should be aware of the opportunities provided by the latest technological advancements that could strengthen the economy through digital currencies.
He also urged state-owned entities to delve into researching blockchain technology, specifically in its role in facilitating cross-border transactions, supply chain finance and the tokenization of real-world assets.
“State-owned assets and state-owned companies will play a bigger role in scientific and technological innovation, adjustment of industrial mix, and security support,” said He in his statement.
Is the Chinese government experiencing stablecoin FOMO?
On July 10, Chinese regulators held a meeting to reevaluate its stance on digital assets in the wake of stablecoin domination in many key parts of the world. As previously reported by crypto.news, the meeting came at a time when companies and experts are pushing for the government to approve yuan-pegged stablecoins.
Recent developments have made stablecoins the focus of several policy shifts, most recently in the United States and Hong Kong. In the U.S., the Guiding and Establishing National Innovation for U.S. Stablecoins Act or GENIUS Act recently received a majority approval vote from the Senate.
The bill just needs a majority vote from the House of Representatives in order to formally pass. The vote is scheduled to occur some time around the end of July.
Meanwhile, the Hong Kong special administrative region has made moves towards getting special licensing for firms interested in issuing stablecoins pegged to the Hong Kong dollar. Earlier this year, Hong Kong regulators agreed to pass the Stablecoin Ordinance, which will come into effect on August 1.
The EU had an earlier start with Market in Crypto-Assets Regulation or MiCA which provided a framework for stablecoin issuers to comply to if they wish to launch stablecoins for customers within the region.
