Shanghai officials and state-owned publications in China are increasingly advocating for a reevaluation of the government's stance on stablecoins. The Shanghai State-owned Assets Supervision and Administration Commission (SASAC) recently convened to discuss potential strategies regarding the growing global adoption of stablecoins. SASAC director He Qing emphasized the need for increased awareness of emerging technologies and better research into digital currencies following the meeting. This initiative aligns with calls from experts and major companies in China to explore the development of a stablecoin based on the Chinese yuan. Meanwhile, the People’s Bank of China (PBOC) is also considering the implications of rising stablecoin usage in global payment systems. PBOC Governor Pan Gongsheng highlighted the transformational capabilities of stablecoins, advocating for regulatory measures to support yuan-backed stablecoins. Adviser Huang Yiping suggested using Hong Kong as a testing ground for such currencies due to mainland China's strict capital controls, noting the potential for an offshore renminbi-backed stablecoin to emerge in Hong Kong.

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