China's state-asset watchdog explores potential role of stablecoins, other digital assets
Shanghai branch of the regulator overseeing the assets of
state-owned enterprises (SOEs) called on these organisations to explore the potential role of
stablecoins and other digital assets in trade.
The State-owned Assets Supervision and Administration Commission (SASAC) in Shanghai said SOEs must 'maintain a keen awareness of emerging technologies' and strengthen research on
digital currencies , according to the agency's statement on Friday.
The statement followed SASAC's study session on the 'development trend and response strategies' of
cryptocurrencies and stablecoins held in China's financial hub, where the regulator urged state-backed organisations to explore the use of
blockchain technology in cross-border trade, supply chain finance and asset tokenisation.
It reflects recent calls made by state media for Beijing to be more proactive in
considering legislation to regulate stablecoins , while studying their potential role in making the yuan a more global currency.
Examples of popular stablecoin tokens in the market, from left: Dai, USD Coin, Tether, Binance USD and TrueUSD. Photo: Shutterstock
According to an article last month by state-owned financial newspaper Securities Times, 'the unique advantages and potential risks of stablecoins cannot be ignored', and 'the development of [yuan-backed] stablecoins should be sooner rather than later'.
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