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China’s growing approach in Stablcoins is less about hugging Crypto and more about defending his currency from the domain of the US dollar, says Dr. Vera Yuen of the business school of the University of Hong Kong, who argues that the change highlights the opportunities on the high seas, but also deep national limits.
Beijing’s change occurs when Washington moved first to create a regulatory framework for the stable industry in the United States, Reuters recently reported that the Chinese State Council is reviewing a road map for the stable backed by Yuan at the end of this month, with Hong Kong and Shanghai that was expected to be expected that rapid adoption.
In a previous interview, the president of the Animoca Group, Evan Auyang, told COINDESK that the trigger was the United States genius law, which consolidates dollar blessing sheets as part of global finances.
He said that the law is “pressing China to act much faster,” pushing Beijing to consider the stable not as speculative instruments, as described once by the Popular Bank of China, but as the infrastructure necessary to maintain rhythm in trade and global agreement.
Yuen said that the Government first prioritized the E-CNY, its digital currency of the Central Bank, because it offered control, traceability and myocometry profits, characteristics that regulators valued on those of the tokens issued in private. But he pointed out that Stablecoins has a clear advantage in international use.
“Many CBDC are developed for domestic use, so for the international use of CBDC, there is a big interoperability problem of different systems. Stablecoins are designed to be used internationally, so it can be a better option for cross -border transactions,” he told Coindesk.
“Focusing on Stablecoins allows China to respond proactively to global regulatory debates and technological advances, ensuring that it remains competitive and prepared as the landscape panorama evolves,” Yuen continued.
Capital controls still mean that any Token Yuan will remain on the high seas, with the new Hong Kong regime providing the test terrain. However, the limited liquidity of CNH emphasizes how narrow is the track for the impulse of China’s internationalization.
“This would limit the issuance of Stablecoins on the high seas, limiting its appeal as a means of payment,” said Yuen.
China does not move in isolation either.
In Japan, Monex Group is preparing to issue a stablcoin backed by yen linked to government bonds, joining other national players such as SBI and JPYC.
However, unlike China, where capital controls boost experimentation in the high seas, Japan regulators are sitting the foundations for the stable circulating at home, indicating the widest race of Asia to maintain the rhythm of US dollars tokens.
For now, Beijing’s Stablecoin experiment looks less like a replacement for e-cny and more as a cautious complement, a way to extend the scope of Yuan abroad without loosening his grip at home.
Market movements
BTC: BTC remained at $ 111k when Nvidia registered strong profits.
ETH: ETH is quoted at $ 4,500, and the story shows that a green August often precedes a 60% end of the year rally, although generally after a September drop.
Gold: The Gold quoted on Wednesday at $ 3,443 per ounce, 1.6% more than since the end of Tuesday, extending a 37% demonstration year after year, although prices fell into early trade as the attention resorted to NVIDIA profits and Trump dispute in Fed.
S&P 500: The S&P 500 increased 0.2% on Wednesday, pushing Wall Street to a new historical maximum before Nvidia profits.
In another part of crypto
- The former Polymarket executive raises $ 15 million from Coinbase and USV for the rival prediction platform (the block)
- Finastra Taps Circle to bring an agreement of the USDC to global cross -border payments of $ 5T (COINDESK)
- Know its Issuer ‘: This technology combines counterfeit coins, starting with USDC and Pyusd (Decrypt)
