{"id":58451,"date":"2025-08-28T03:47:19","date_gmt":"2025-08-28T03:47:19","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-update-us-stablecoin-law-prompts-china-to-accelerate-its-own-plans\/"},"modified":"2025-08-28T03:47:19","modified_gmt":"2025-08-28T03:47:19","slug":"crypto-update-us-stablecoin-law-prompts-china-to-accelerate-its-own-plans","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-update-us-stablecoin-law-prompts-china-to-accelerate-its-own-plans\/","title":{"rendered":"Crypto update: US stablecoin law prompts China to accelerate its own plans"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/04\/image-31-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/04\/image-31-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/04\/image-31-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/04\/image-31-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>China\u2019s stablecoin push is a defensive move against US dollar dominance.<\/li>\n<li>The US GENIUS Act is the key trigger for Beijing\u2019s recent policy shift.<\/li>\n<li>The experiment will be limited to offshore markets like Hong Kong.<\/li>\n<\/ul>\n<p>A seismic shift is underway in Beijing. The Chinese government, long a staunch opponent of private cryptocurrencies, is now being forced to reluctantly enter the stablecoin arena.<\/p>\n<p>But this is not a newfound love for digital assets; it is a calculated and defensive masterstroke in the escalating global war for currency supremacy\u2014a direct response to a power play from Washington that threatens to cement the US dollar\u2019s dominance for a generation to come.<\/p>\n<div class=\"ad-banner  container  pt-1  px-0  mb-6\" data-partner=\"bitcoinpenguin\">\n        <a href=\"https:\/\/bitcoinpenguins.io\/en?utm_source=coinjournal&amp;utm_medium=banner&amp;utm_campaign=header\" target=\"_blank\" rel=\"nofollow sponsored noopener\"><br \/>\n            <img decoding=\"async\" class=\"p-0  m-0\" src=\"https:\/\/coinjournal.net\/wp-content\/themes\/c1-base\/dist\/img\/ad\/bitcoinpenguin\/en.png\"\/><br \/>\n        <\/a>\n    <\/div>\n<h2>The Washington wake-up call<\/h2>\n<p>The trigger for this dramatic pivot, according to industry leaders, was the passage of the U.S. GENIUS Act, a landmark piece of legislation that formally integrates dollar-pegged tokens into the architecture of global finance.<\/p>\n<p>Animoca Group president Evan Auyang told CoinDesk the law is \u201cpressuring China to act a lot faster,\u201d forcing a fundamental rethink in Beijing.<\/p>\n<p>Suddenly, stablecoins were no longer viewed as speculative instruments, but as essential infrastructure for global trade and settlement.<\/p>\n<p>Now, Reuters reports that China\u2019s State Council is reviewing a roadmap for yuan-backed stablecoins, a move that signals a profound strategic realignment.<\/p>\n<h2>A tale of two currencies: the global edge of a stablecoin<\/h2>\n<p>This new direction represents a significant departure from China\u2019s initial strategy, which focused exclusively on its own Central Bank Digital Currency, the e-CNY.<\/p>\n<p>According to Dr. Vera Yuen of Hong Kong University\u2019s Business School, the government initially prioritized the e-CNY because it offered what Beijing values most: control, traceability, and profit.<\/p>\n<p>But as Dr. Yuen told CoinDesk, the e-CNY has a critical weakness: it was built for domestic use.<\/p>\n<p>\u201cFor international use of CBDCs, there is a big problem of interoperability of different systems. Stablecoins are designed to be used internationally, so it can be a better option for cross-border transactions,\u201d she said.<\/p>\n<p>This realization has forced China to adopt a dual-pronged approach.<\/p>\n<p>\u201cFocusing on stablecoins allows China to respond proactively to global regulatory debates and technological advances, ensuring it remains competitive and prepared as the digital currency landscape evolves,\u201d Yuen continued.<\/p>\n<h2>An offshore experiment, a domestic cage<\/h2>\n<p>This is not, however, an open embrace.<\/p>\n<p>China\u2019s notoriously strict capital controls mean this stablecoin experiment will be carefully ring-fenced, taking place almost entirely offshore with Hong Kong\u2019s new regulatory regime serving as the primary testing ground.<\/p>\n<p>This creates a fundamental paradox: China wants to project its currency\u2019s power globally, but its unwillingness to loosen its grip at home creates a major hurdle.<\/p>\n<p>\u201cThis would limit the issuance of offshore renminbi stablecoins, constraining its attractiveness as a means of payment,\u201d Yuen warned, highlighting the narrow runway for this international push.<\/p>\n<h2>The Asian arms race<\/h2>\n<p>China is not acting in a vacuum. A broader financial arms race is heating up across Asia as nations scramble to avoid being left behind by dollar-pegged digital finance.<\/p>\n<p>In Japan, financial giant Monex Group is preparing to issue a yen-backed stablecoin tied to government bonds.<\/p>\n<p>But unlike China\u2019s offshore-only approach, Japanese regulators are laying the groundwork for stablecoins to circulate domestically, a sign of a more open and integrated strategy.<\/p>\n<p>For now, Beijing\u2019s move looks less like a replacement for the e-CNY and more like a cautious and necessary complement\u2014a strategic tool to extend the yuan\u2019s influence abroad without sacrificing an ounce of control at home.<\/p>\n<p><strong>How markets are moving:<\/strong><\/p>\n<ol>\n<li><strong>BTC:<\/strong> Bitcoin held firm at $111,000 as the market reacted positively to strong earnings from the tech bellwether Nvidia.<\/li>\n<li><strong>ETH:<\/strong> Ethereum is trading at $4,500, with historical data showing that a green August often sets the stage for a 60 percent rally into year-end, though this typically follows a dip in the historically weak month of September.<\/li>\n<li><strong>Gold:<\/strong> Gold traded Wednesday at $3,443 per ounce, a 1.6 percent jump from Tuesday\u2019s close, extending its impressive 37 percent year-over-year rally.<\/li>\n<\/ol>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/us-stablecoin-law-prompts-china-to-accelerate-its-own-plans\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) China\u2019s stablecoin push is a defensive move against US dollar dominance. The US GENIUS Act is the key trigger for Beijing\u2019s recent policy shift. The experiment will be limited to offshore markets like Hong Kong. A seismic shift is underway in [&hellip;]<\/p>\n","protected":false},"author":3947362378,"featured_media":58452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/58451"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362378"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=58451"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/58451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/58452"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=58451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=58451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=58451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}