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

How to respond to the strong impact of the US dollar stablecoin? There has been heated discussion on stablecoins from government officials, entrepreneurs, economists, national think tanks, brokerages, and other sectors.

Written by: AIMan@Golden Finance

What is the hot topic in June 2025 that is simultaneously popular in both China and the United States? It definitely has to do with stablecoins.

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

On the same day, the first US dollar stablecoin, Circle, was listed on the New York Stock Exchange at an issuance price of $31, with a first-day increase of over 160%, and it continued to surge to $150 in the following days.

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 surged again as a result. As of the time of writing, Circle has risen above 240 USD. In just 15 days since its listing, Circle's stock price has increased nearly 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 the governor of the People's Bank of China, Pan Gongsheng, 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 insane surge in Circle's stock, and the attention from 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 cope with 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 brokerages. Relevant conference calls, articles, research reports, and speeches have emerged one after another, making it a case of "always mentioning stablecoins," which has triggered a lot of reflection and suggestions regarding the RMB stablecoin, the internationalization of the RMB, and even cryptocurrency policies.

It is stablecoins that have made mainstream officials in China begin to take cryptocurrency seriously. 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 from various sectors in China, including politics, business, and academia, towards stablecoins and even cryptocurrencies, Jinse Finance has specially compiled statements from relevant individuals. From these, we may glimpse the measures that China might take in response to the impact of the US dollar stablecoin. The details are as follows.

Government High Level

The People’s Bank of China and the 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 interconnection of the Mainland and Hong Kong Rapid Payment Systems (referred to as Cross-Border Payment Link). The Cross-Border Payment Link officially launched on June 22. By directly connecting the Mainland Online Payment Interbank Clearing System with Hong Kong's Rapid Payment System "Faster Payment System", it provides efficient, convenient, and secure cross-border payment services for residents of both regions. (Analysts generally believe that this move may create a new channel for the internationalization of the renminbi: "Domestic Renminbi - Cross-Border Payment Link to Hong Kong - (HKD/RMB) stablecoin global circulation") Source: The People’s Bank of China and the Hong Kong Monetary Authority jointly held the launch ceremony for the Cross-Border Payment Link.

Pan Gongsheng, the governor of the central bank, mentioned 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 upon settlement," fundamentally reshaping the traditional payment system, significantly shortening the cross-border payment chain, while also posing huge challenges for financial regulation. Technologies such as smart contracts and DeFi will continue to promote the evolution and development of the cross-border payment system. Source: Several Reflections 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, requiring constant vigilance. It is necessary to conduct in-depth research on the potential impact of dollarization on the economies of different countries, especially in those countries that have not yet fallen into high inflation or high debt dilemmas, 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 is prudently advancing the development of stablecoins, reflecting its role as a "firewall" and a "testing ground" under "one country, two systems," providing experience and reference for the country's financial development. Hong Kong has adopted a more open model, allowing licensed issuers to choose different fiat currencies as the anchor fiat for issuing stablecoins. Source: Secretary's Essay.

Xu Zhengyu, Secretary for Financial Services and the Treasury of Hong Kong: The Hong Kong stablecoin regulation allows 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 were to happen, it must take into account the overall national exchange rate as well as 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.com: JD.com will apply for stablecoin licenses in major currency countries around the world. With stablecoin licenses, it will be possible to facilitate foreign exchange among global enterprises, reducing cross-border payment costs by 90% and increasing 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 transcript of Liu Qiangdong's small-scale communication meeting.

Mike Gang, angel investor: Currently, the introduction of the US dollar stablecoin bill is another heavyweight means of international monetary competition. Countries around the world are increasingly concerned about the United States' debt repayment capability. The issuance of US dollar stablecoins provides substantial purchasing power for US Treasuries. The strength of the United States lies in its ability to turn crises into opportunities repeatedly, even changing the rules of the game. I suggest that relevant Chinese authorities take immediate action to formulate related systems and legislation to promote the issuance of offshore RMB stablecoins. This is crucial because the globalization of the RMB is a significant long-term strategy that concerns the welfare of the Chinese people. The circulation of Chinese-manufactured physical goods worldwide demonstrates the strength of China’s national power. However, it is important to remember that currency is also a special and the highest level of commodity, which is a basic knowledge taught in undergraduate courses. I believe this is what is referred to as the combination of soft power and hard power. Source: The prophecy of 2013: Mike Gang discusses Bitcoin, currency wars, and the internationalization of the RMB.

Liu Peng, CEO of JD Coin Chain Technology: We expect to obtain a license in early the fourth quarter of 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 be among the first to use the stablecoin issued in Hong Kong for payment settlements. In terms of product technology, there is not much difference between issuing offshore RMB stablecoins and HKD stablecoins. Whether the offshore RMB stablecoin can be implemented ultimately depends on mainland regulation. Source: Ten Questions with 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 the real and virtual, the present and future, and the human and machine economy. Its development process will profoundly impact the future direction of the global financial landscape and 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 a global mainstream currency, and its impact on China is multidimensional, currently at a stage that requires active response. China could consider using Hong Kong as a testing ground to launch an offshore RMB stablecoin pilot, exploring its collaborative mechanism with central bank digital currency. 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 Group: Developing a Renminbi stablecoin is a means to respond to the new US cryptocurrency policy and a new tool to accelerate the internationalization of the Renminbi. It is advisable to launch an offshore Renminbi stablecoin in Hong Kong as soon as possible, rather than delaying. The development of stablecoins has strong economies of scale and network effects, making it very difficult for latecomer stablecoins to catch up with early movers. Source: Using offshore Renminbi stablecoins to promote the internationalization of the Renminbi.

Deng Jianpeng, Professor at the Central Political and Legal University: Global cryptocurrency asset regulation is shifting from the past of allowing it to "grow wildly" to the present of "rule reconstruction." In the face of this trend, China needs to avoid missing out on technological revolution opportunities due to policy lag while adhering to the bottom line of financial security, actively participate in rule-making, and gain a voice in this matter. Source: Deng Jianpeng: Regulatory Trends of Global Cryptocurrency Assets 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 promotes stablecoin legislation, and its legislative purpose clearly serves the interests of the US dollar. The stablecoin mechanism cleverly transforms the expansion of the crypto market into an extension of the US dollar's influence on the blockchain.

The development of stablecoins should be taken seriously. In the face of the stablecoin wave, China needs to advance on two tracks simultaneously. On one hand, it must firmly promote the internationalization of the Renminbi; on the other hand, it must recognize that the trend of the integration of stablecoins, cryptocurrencies, and the traditional financial system will be difficult to reverse.

In terms of development path, we should make full use of Hong Kong's favorable conditions, rely on its status as a financial center and existing institutional foundation, develop offshore RMB stablecoins, and build controllable international payment channels. We should also create conditions to make use of Shanghai's status as an international financial center to actively and steadily develop the renminbi stablecoin. Source: Li Yang: In the face of the wave of stablecoins, China needs to go on two tracks

Yang Tao, Deputy Director of the National Finance and Development Laboratory: In the face of the global stablecoin market and regulatory trends, our country should first promote legislation related to stablecoins as soon as possible. In the medium to long term, we can also explore the overall legislation for cryptocurrency regulation, constructing a "long-arm jurisdiction principle" for our country's Web3 finance in a layered and phased manner. In the short term, our exploration of stablecoins should focus on the renminbi stablecoin, aiming to quickly secure a position in the global fiat-collateralized stablecoin market. Source: Understanding the Theoretical and Practical Logic of Renminbi Stablecoins.

Shen Jianguang, Chief Economist at JD.com, published an article in a financial magazine under the Joint Office (formerly known as the "Securities Exchange Research and Design Joint Office"): he suggested that China should combine its national conditions to first support Hong Kong Special Administrative Region in quickly piloting the launch of offshore RMB stablecoins, and then promote the gradual development of offshore RMB stablecoins from Hong Kong to the mainland free trade zones and free trade ports according to the "first offshore and then domestic offshore" progressive model, providing a new engine for the internationalization of the RMB. Source: Shen Jianguang, Zhu Taihui, Wang Ruohan, the intention and implications of the US stablecoin bill.

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

Shanghai Development Research Foundation: During its second term, the Trump administration vigorously promoted the legislation of US dollar stablecoins, with intentions not solely to foster financial innovation but out of multiple strategic considerations, including attempting to maintain the dominance of the US dollar, competing for the dominance of distributed financial rules, and providing new channels for the demand of US treasury bonds. Currently, it is not feasible for China to issue and use renminbi stablecoins domestically; however, issuing offshore renminbi stablecoins is of positive significance. To prudently advance the development of renminbi stablecoins, it is recommended to adopt a model of 'first offshore, then domestic, and gradually promote.' Source: Seminar: On Global Stablecoins and Renminbi Stablecoins.

Zou Chuanwei, Director, Frontier Finance Research Center, Shanghai Finance and Development Laboratory: US dollar stablecoins have promoted "dollarization" on a global scale in digital form. This digital "dollarization" further strengthens the international status of the dollar, erodes the monetary sovereignty of other countries, and may exacerbate the structural imbalances of their economies. Can China use stablecoin technology? Under the Linked Exchange Rate System, the Hong Kong dollar is pegged to the US dollar, and the Hong Kong dollar stablecoin mainly expands the payment channels and scenarios of the Hong Kong dollar, rather than competing with the US dollar stablecoin. In Chinese mainland, where mobile payments are highly developed, onshore RMB stablecoins are of little significance and difficult to accommodate capital project management. In contrast, offshore RMB stablecoins are a more discussable issue. Source: Confronting and Responding to the Challenges of USD Stablecoins

Liu Xiaochun: Former President of Zhejiang Commercial Bank, Vice President of Shanghai New Financial Research Institute: If China issues a RMB 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 RMB. Source: What is the key to the success of stablecoins?

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

Brokerage Firm

CICC: The Hong Kong stablecoin bill allows 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 currency internationalization. Source: CICC: The Potential Impact of Stablecoins on the Financial System.

Zhongtai Securities: At the current stage, stablecoins are amplifiers of the dollar's circulation capability. Stablecoins do not challenge the credit essence of the dollar, but they are quietly rewriting the circulation paths of the dollar, the points of capital placement, and the global capital pricing methods – this is a revolution about "paths" rather than "currency." Stablecoins have not overturned the dollar's monetary status, but they are changing the way the dollar plays its global role. This is a subtle change in the operation of the dollar system, and the impact may be deeper than what is superficially observed. Source: From Dollar Hegemony to Dollar On-Chain: How Stablecoins Restructure Global Capital Paths?

CITIC Construction Investment: Stablecoins, as cryptocurrencies that anchor fiat currencies or the prices of other assets, are gradually evolving into a new type of financial infrastructure, playing an important role in payments, cross-border settlements, digital asset trading, and DeFi, and contributing to the reconstruction of the international financial system. Source: Stablecoins: Restructuring the International Financial System

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

Galaxy Securities: China is expected to launch a RMB stablecoin in the future. Firstly, the launch of USD stablecoins will suppress "weak" currencies, and the RMB needs to enhance its own use cases. Secondly, China's globalization process will inevitably require joining the on-chain financial system. Moreover, strong nations need strong finance. Strong finance also needs to occupy a place in the on-chain financial field. Finally, 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 the opportunity for a shortcut. Source: Zhang Jun: Stablecoins emerging from the jungle.

Zhaoshang Macro: 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, which will become a significant breakthrough in promoting the internationalization of the renminbi and provide an important vehicle for the reconstruction of renminbi asset valuation. Source: The Nature and Investment Value of Stablecoins.