Shanghai Officials' Shift in Attitude Toward Stablecoins

Shanghai officials are showing a notable shift in attitude toward stablecoins despite China’s longstanding ban on cryptocurrency buying selling and mining.

The Shanghai State-owned Assets Supervision and Administration Commission (SASAC) held a meeting on July 10, 2025, bringing together 60-70 officials and experts to discuss strategic responses to stablecoins and digital currencies.

SASAC director He Qing emphasized the need for “greater sensitivity to emerging technologies and enhanced research into digital currencies,” signaling a more receptive stance toward stablecoins than previously seen in China.

There are growing calls from experts and major Chinese companies to develop stablecoins pegged to the Chinese yuan. These companies are reportedly preparing applications to issue yuan-backed stablecoins via Hong Kong, where stablecoin licensing legislation is expected to come into effect on August 1, 2025.

Due to mainland China’s strict capital controls, some officials and advisers suggest using Hong Kong’s offshore renminbi market to pilot yuan-pegged stablecoins, leveraging Hong Kong’s more flexible regulatory environment.

While Shanghai regulators are exploring policy responses and research, they have not endorsed any changes to the existing crypto ban.

Mainland regulators continue to warn against scams and illegal fundraising schemes involving stablecoins and related crypto concepts like DeFi and Web3, highlighting risks of financial fraud and money laundering.

China’s central bank, the People’s Bank of China (PBOC), has acknowledged the transformative potential of stablecoins in global payment systems, partly as a response to the dominance of US dollar-linked stablecoins like Circle’s USDC.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)

Posted Using INLEO