China Urged to Embrace Stablecoins Amid U.S.Regulatory Progress
As the U.S. advances its stablecoin regulations, china is feeling the pressure to keep up. A recent state media article in Securities Times suggests that Beijing should adapt to the stablecoin trend. The U.S. recently passed a stablecoin bill, allowing regulated issuers to create dollar-pegged digital tokens.This move could strengthen the dollar’s dominance in digital trade.
Chinese policymakers are urged to develop yuan-backed stablecoins adn establish regulations. The U.S. GENIUS Act, which passed recently, has sparked discussions in China. Analysts fear falling behind could hinder the yuan’s global role. Stablecoins, seen as a new payment tool, offer significant benefits despite risks. The article argues that China should act quickly to avoid being left behind.
Stablecoins are digital tokens tied to customary currencies. They provide stability in the volatile crypto market. The U.S. bill gives issuers a green light, perhaps boosting the dollar’s influence. China’s digital currency strategy may need a rethink. The article highlights the need for China to act fast. it calls for developing yuan-backed stablecoins.This could help the yuan gain ground in digital transactions. The U.S. Senate’s GENIUS Act, which sets rules for stablecoin issuance, has bipartisan support.
Though, some Democrats, like Senator Elizabeth Warren, worry the bill is too lenient on conflicts of interest. Despite concerns, industry experts see the GENIUS Act as a positive step. Christian catalini, founder of MIT’s Cryptoeconomics Lab, believes it will spur innovation and consumer benefits.
China’s International Capital Corporation analysts note that moast stablecoins are still tied to the U.S. dollar. This reinforces the dollar’s global status, reducing costs and easing transactions. Yet, rising geopolitical tensions and U.S.debt levels may eventually erode dollar confidence, opening opportunities for other digital currencies.
Former Chinese central bank head Zhou Xiaochuan warned that
