Shanghai SASAC meeting signals softer stance on stablecoins after Hong Kong legislation
stablecoin deployment in China, as the country's biggest metropolis explores how the digital asset can solidify its status as a financial and global trade hub.
City leaders would instruct the government-controlled digital service provider and a local financial institution to study the feasibility of launching stablecoins as a way of mitigating risks, according to two local officials familiar with the matter who spoke on condition of anonymity.
State-owned entities like Guotai Haitong, owned by the local government and Shanghai Data Group, the city's key data infrastructure firm, would look into the feasibility of launching a trial run of stablecoins, according to the officials.
A meeting last Thursday by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) had largely been interpreted as a further softening of China's stance on cryptocurrency. That came after central bank governor Pan Gongsheng flagged the significance of stablecoins in areas such as cross-border payments at a financial forum last month.
At last week's meeting, Shanghai SASAC director He Qing said local regulators and state-owned company executives should be astute at finding opportunities arising from the latest technologies and strengthen research into digital currencies.
The logo for the e-CNY, a digital version of the Chinese Yuan, seen during the China International Fair for Trade in Services in Beijing, September 5, 2021. Photo: AP
He also called for more research into the application of blockchain technology to transborder trade, supply chain finance and asset digitalisation.
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