How will China respond to the impact of the US dollar stablecoin?

In June 2025, what was a hot topic in both China and the United States? It was definitely stablecoins.

On June 6, 2025, the Hong Kong Government Gazette published a notice announcing that the Hong Kong "Stablecoin Ordinance" will take effect on August 1, 2025.

On the same day, the US dollar stablecoin pioneer Circle went public on the NYSE with an issuance price of $31, and its first-day increase exceeded 160%, subsequently surging continuously over the next few days to reach $150.

On June 17, the U.S. Senate passed the GENIUS Act, prompting Web2 giants like Amazon and Walmart to consider launching their own stablecoins, and Circle subsequently surged again. As of the time of writing, Circle has exceeded $240. In just 15 days since its listing, Circle's stock price has nearly increased by 7 times.

On June 17, the founder of JD.com, Liu Qiangdong, made a strong comeback. In his comeback speech, Liu Qiangdong specifically mentioned stablecoins.

Not only Liu Qiangdong, but also Pan Gongsheng, the governor of the People's Bank of China, mentioned stablecoins for the first time at the annual Lujiazui Forum on June 18.

With the successive passage of stablecoin bills in Hong Kong and the United States, the crazy rise of Circle's stock, and the attention of top figures in China such as Liu Qiangdong and the central bank governor towards stablecoins, it is evident that stablecoins have become a hot topic.

How to respond to the strong impact of the US dollar stablecoin? There has been a heated discussion about stablecoins among various sectors, including government officials, entrepreneurs, economists, national think tanks, and securities firms. Related conference calls, articles, research reports, and speeches are emerging one after another, making it a topic where "stablecoin is always mentioned," which has triggered a lot of reflection and suggestions regarding the renminbi stablecoin, the internationalization of the renminbi, and even cryptocurrency policies.

It is stablecoins that have caused mainstream officials in China to begin to seriously regard cryptocurrencies. Some have even made a 360-degree turn in their attitude.

In order to gain a comprehensive understanding of the latest views and attitudes of mainstream figures in the Chinese political, business, and academic circles regarding stablecoins and even cryptocurrencies, Jinse Finance has specifically compiled statements from various sectors. From these, we may glimpse the measures China might take in response to the impact of the US dollar stablecoin. As follows.

Government Officials

People's Bank of China and Hong Kong Monetary Authority: On the morning of June 20, the People's Bank of China and the Hong Kong Monetary Authority jointly held the launch ceremony for the connectivity of the Mainland and Hong Kong Rapid Payment Systems (referred to as Cross-Border Payment Link). The Cross-Border Payment Link officially went live on June 22. It directly connects the Mainland online payment interbank clearing system with Hong Kong's rapid payment system "Faster Payment System" to provide efficient, convenient, and secure cross-border payment services for residents of both places. (Analysts generally believe that this move may form a new channel for "Domestic Renminbi - Cross-Border Payment Link to Hong Kong - (HKD/RMB) stablecoin Global Circulation" for the internationalization of the Renminbi.) Source: People's Bank of China and Hong Kong Monetary Authority jointly held the launch ceremony for Cross-Border Payment Link.

Pan Gongsheng, Governor of the Central Bank, mentions stablecoins for the first time: Emerging technologies such as blockchain and distributed ledger technology are driving the vigorous development of central bank digital currencies and stablecoins, achieving "payment is settlement," fundamentally reshaping the traditional payment system, significantly shortening the cross-border payment chain, while also posing tremendous challenges to financial regulation. Technologies such as smart contracts and DeFi will continue to promote the evolution and development of the cross-border payment system. Source: Thoughts on Global Financial Governance — Keynote Speech by Pan Gongsheng, Governor of the People's Bank of China at the 2025 Lujiazui Forum.

Zhou Xiaochuan, former governor of the central bank: The US dollar stablecoin, supported by the strong US dollar system behind it, may further promote the phenomenon of dollarization and is more likely to have a global impact, necessitating constant vigilance. There is a need for in-depth research on the potential impact of dollarization on the economies of different countries, especially in those that have not yet fallen into high inflation or high debt crises, to determine whether dollarization is truly suitable for them. Source: Zhou Xiaochuan: US dollar stablecoin may assist dollarization.

Paul Chan, Financial Secretary of Hong Kong: Hong Kong prudently advances the development of stablecoins, reflecting Hong Kong's role as a "firewall" and "experimental field" under "one country, two systems," providing experience and reference for the financial development of the country. Hong Kong has adopted a more open model, allowing licensed issuers to choose different fiat currencies as the anchor fiat currency for issuing stablecoins. Source: Secretary's Essay

Xu Zhengyu, Secretary for Financial Services and the Treasury of Hong Kong: The Hong Kong stablecoin regulations allow for different fiat currencies to serve as the underlying benchmark for stablecoins. From a regulatory perspective, the possibility of stablecoins being pegged to the Renminbi cannot be ruled out. If this is to be done, it must take into account the overall national exchange rate and monetary policy. Source: Xu Zhengyu: Hong Kong regulations do not rule out the possibility of stablecoins being pegged to the Renminbi.

Investors and Entrepreneurs

Liu Qiangdong, founder of JD Group: JD will apply for stablecoin licenses in major currency countries around the world. Through stablecoin licenses, it will enable foreign exchange between global enterprises, reducing cross-border payment costs by 90% and improving efficiency to within 10 seconds. I hope that one day, when everyone consumes around the world, JD stablecoin can serve as a global payment method. Source: Full text of Liu Qiangdong's small-scale communication meeting.

Mike Gang, Angel Investor: Currently, the introduction of the US dollar stablecoin bill is another heavy-handed tool in the international currency competition. Many countries around the world are concerned about the US's debt repayment ability. The issuance of the US dollar stablecoin provides tremendous purchasing power for US Treasury bonds. The strength of the US lies in its ability to repeatedly turn crises into opportunities, even changing the rules of the game. It is recommended that relevant Chinese authorities take immediate action to formulate related systems and legislation to promote the issuance of offshore RMB stablecoins. The globalization of the RMB is a significant long-term strategy concerning the welfare of the Chinese people. The circulation of physical goods made in China worldwide strengthens China's national power. However, please remember that currency is also a special and the highest level of commodity, as taught in undergraduate courses. I believe this is the combination of so-called soft power and hard power. Source: 2013 Prophecy: Mike Gang Talks About Bitcoin, Currency Wars, and RMB Internationalization.

Liu Peng, CEO of JD Coin Chain Technology: We expect to obtain a license in early Q4 this year and simultaneously launch the JD stablecoin. We anticipate that international trade in regions such as Asia-Pacific, the Middle East, Africa, South America, and Europe will likely be the first to use the stablecoin issued in Hong Kong for payment settlement. At the technical product level, the difference between issuing offshore RMB stablecoin and HKD stablecoin is not significant. Whether the offshore RMB stablecoin can be realized ultimately depends on domestic regulation. Source: Ten Questions to JD Coin Chain CEO: What is the progress of JD stablecoin and when will it be launched?

Xiao Feng, Chairman of Wanxiang Blockchain: China's cross-border e-commerce is an important beneficiary of the stablecoin cross-border payment dividend. Stablecoins are no longer simply the "USD of the crypto world"; they are reshaping the form of value exchange with their powerful technological attributes and are expected to become a key hub connecting reality and the virtual world, the present and the future, and the human and machine economy. Its development process will profoundly impact the global financial landscape and the future direction of the digital economy. Source: Xiao Feng: From Distributed Ledger to the Future Landscape of Stablecoins.

The goal of the US dollar stablecoin is to maintain the US dollar's status as the world's mainstream currency, and its impact on China is multidimensional, currently in a stage that requires proactive response. China may consider using Hong Kong as a testing ground to launch offshore RMB stablecoin pilot projects, exploring the collaborative mechanism with central bank digital currencies. Source: Stablecoin: A New Stage in Currency Evolution

Economists and National Think Tanks

"China Economic Times" Stablecoin Special Plan: "China Economic Times" is a newspaper sponsored by the Development Research Center of the State Council.

Shen Jiangguang, Chief Economist of JD.com: Developing a renminbi stablecoin is a means to respond to the new U.S. cryptocurrency policy and is a new lever to accelerate the internationalization of the renminbi. It is advisable to launch the offshore renminbi stablecoin in Hong Kong as soon as possible, rather than delay. The development of stablecoins has strong scale effects and network effects, making it very difficult for latecomer stablecoins to catch up with early mover stablecoins. Source: Promoting the internationalization of the renminbi with offshore renminbi stablecoins.

Deng Jianpeng, Professor at the Central University of Political Science and Law: Global regulation of crypto assets is shifting from allowing "barbaric growth" in the past to "rule reconstruction" today. In light of this trend, China needs to avoid missing out on technological revolution opportunities due to policy lag while safeguarding the bottom line of financial security, actively participate in rule-making, and gain a voice in the discourse. Source: Deng Jianpeng: Trends in Global Crypto Asset Regulation and China's Response.

Li Yang, former Vice President of the Chinese Academy of Social Sciences and Chairman of the National Finance and Development Laboratory: The United States is promoting stablecoin legislation, with the legislative purpose clearly serving the interests of the US dollar. The stablecoin mechanism cleverly converts the expansion of the crypto market into an extension of the dollar's influence on-chain.

The development of stablecoins should be emphasized. In the face of the stablecoin wave, China needs to progress on two tracks. On one hand, we must firmly promote the internationalization of the Renminbi, and on the other hand, we must recognize that the trend of the integration and development of stablecoins, cryptocurrencies, and the traditional financial system will be hard to reverse.

In terms of development path, we should fully utilize Hong Kong's advantageous conditions, relying on its status as a financial center and existing institutional foundation to develop offshore RMB stablecoin and build controllable international payment channels. We should also create conditions to actively and steadily develop RMB stablecoin, leveraging the status of Shanghai as an international financial center. Source: Li Yang: In the face of the stablecoin wave, China needs to advance on two tracks.

Yang Tao, Deputy Director of the National Financial and Development Laboratory: In the face of global stablecoin market and regulatory trends, our country should first expedite the legislation related to stablecoins, and in the medium to long term, it can explore the overall legislation for cryptocurrency regulation, constructing a "long-arm jurisdiction principle" for our country's Web3 finance in a layered and phased approach. In the short term, our exploration of stablecoins should focus on RMB stablecoins, aiming to quickly secure a place in the global fiat-backed stablecoin market. Source: Understanding the Theoretical and Practical Logic of RMB Stablecoins.

Shen Jianguang, Chief Economist of JD.com, published an article in the financial magazine under the United Office (formerly known as the "Securities Exchange Research and Design United Office"): It is suggested that China combine its national conditions to first support Hong Kong SAR in quickly piloting the offshore RMB stablecoin, and then promote the offshore RMB stablecoin from Hong Kong SAR to the mainland free trade zones and free trade ports in a gradual mode of "first offshore outside the country and then offshore inside the country", providing a new engine for the internationalization of the RMB. Source: Shen Jianguang, Zhu Taihui, Wang Ruohan, the intention and enlightenment of the US stablecoin bill.

Zhang Ming, Deputy Director of the Institute of World Economics and Politics, Chinese Academy of Social Sciences: The development of US dollar stablecoins may enhance the status of the dollar in the global currency arena. Other countries should attach great importance and actively respond, and develop their own stablecoins or central bank digital currencies as soon as possible to ensure they do not fall behind in the wave of competition in digital forms of currency. Source: Zhang Ming: We should pay close attention to the development situation of global stablecoins.

Shanghai Development Research Foundation: The Trump administration vigorously promoted legislation on US dollar stablecoins during its second term. Its intention is not merely to foster financial innovation but is driven by multiple strategic considerations, including attempts to maintain the dominance of the US dollar, compete for the leadership in distributed financial regulations, and provide new channels for US Treasury demand. Currently, it is not feasible for China to issue and use Renminbi stablecoins domestically. However, issuing offshore Renminbi stablecoins abroad is of positive significance. To prudently advance the development of Renminbi stablecoins, it is recommended to adopt a model of "first offshore, then domestic offshore, and gradually advance." Source: Seminar: On Global Stablecoins and Renminbi Stablecoins.

Zou Chuanwei, Director of the Frontier Finance Research Center at the Shanghai Financial and Development Laboratory: The US dollar stablecoin has propelled "dollarization" globally in digital form. This digital form of "dollarization" further enhances the international status of the US dollar, eroding the monetary sovereignty of other countries and potentially exacerbating structural economic imbalances in those countries. Can China utilize stablecoin technology? Under the linked exchange rate system, the Hong Kong dollar is pegged to the US dollar, and the Hong Kong dollar stablecoin primarily expands the payment channels and scenarios for the Hong Kong dollar rather than competing with the US dollar stablecoin. In mainland China, mobile payments have developed highly, making the onshore RMB stablecoin less significant and difficult to integrate with capital project management. In contrast, the offshore RMB stablecoin is a more worthwhile topic for discussion. Source: Facing and Addressing the Challenges of US Dollar Stablecoins.

Liu Xiaochun: Former President of Zhejiang Commercial Bank, Deputy Director of Shanghai New Financial Research Institute: If China issues a renminbi stablecoin, its primary purpose should not be to compete with the US dollar stablecoin, but to serve the development of emerging economies and to facilitate the internationalization of the renminbi. Source: What is the key to the success of stablecoins?

Wang Yongli, former vice president of Bank of China: The field of stablecoins and crypto assets has become a battleground among large merchants and even countries. China needs to adjust its policies regarding crypto assets and stablecoins, and at the very least, actively participate in the development of crypto assets and stablecoins abroad, accelerate the enhancement of its own international competitiveness, and strengthen its influence in international cooperation in this field. Source: The rapid development of the US dollar stablecoin brings profound warnings.

Broker

CITIC Securities: The Hong Kong stablecoin bill allows for the issuance of non-US dollar stablecoins, which can expand the use of non-US dollar currencies in international payment, settlement, and investment financing scenarios, accelerating the process of internationalization. In summary, the Hong Kong stablecoin bill has a profound impact on the internationalization of currencies. Source: CITIC: The Potential Impact of Stablecoins on the Financial System.

Zhongtai Securities: At this stage, stablecoins are an amplifier of the liquidity of the US dollar. Rather than challenging the credit ontology of the U.S. dollar, stablecoins are quietly rewriting the U.S. dollar's circulation path, the choice of funds, and the pricing of global capital—a revolution about "paths" rather than "currencies". Stablecoins are not disrupting the dollar's monetary status, but they are changing the way the dollar plays a global role. This is a quiet change in the way the dollar system works, and the impact may be more profound than it seems. Source: From Dollar Hegemony to Dollar On-Chain: How Can Stablecoins Reconstruct Global Funding Paths?

CITIC Construction Investment: Stablecoins, as a type of encrypted digital currency that anchors the price of fiat currencies or other assets, are gradually evolving into a new financial infrastructure, playing an important role in payment, cross-border settlement, digital asset trading, and DeFi, and contributing to the reconstruction of the international financial system. Source: Stablecoins: Reconstructing the International Financial System.

Huatai Securities: The United States and Hong Kong are taking a proactive approach to the regulatory framework for stablecoins, viewing them as an important component of future digital financial infrastructure. Both hope to further expand the influence of fiat currency and consolidate their respective financial center positions through proper management of stablecoins. Source: Diverse Finance: Ten Questions About Stablecoins

Galaxy Securities: China's future is expected to launch a RMB stablecoin. Firstly, the launch of USD stablecoins will suppress "weak" currencies, and the RMB needs to enhance its usage scenarios. Secondly, China's globalization process inevitably requires integration into the on-chain financial system. Thirdly, powerful nations need strong finance. Strong finance also needs to have a place in the on-chain financial field. Lastly, under the traditional framework, it will still take a long time for the RMB to surpass the USD, while the blockchain currency system provides the RMB with an opportunity to overtake on a curve. Source: Zhang Jun: Stablecoins Coming Out of the Jungle

**招商宏观：**Stablecoins have deeply intervened in the competition and reshaping of the international monetary system, becoming a strategic tool in the currency competition between China and the United States in the digital economy. Dollar stablecoins continue to consolidate the global monetary hegemony of the dollar, while Hong Kong dollar stablecoins and offshore renminbi stablecoins provide a new path for the internationalization of the renminbi, becoming a significant breakthrough for promoting the internationalization of the renminbi and providing an important vehicle for the reconstruction of renminbi asset valuation.