Latest news with #internationalfinance
Yahoo
6 hours ago
- Business
- Yahoo
Stablecoin Push Gains Ground in China in New Challenge to US
(Bloomberg) -- China faces growing calls from policy advisers and economists to explore using stablecoins for cross-border payments, as the US moves to entrench the dollar's dominance through the still-emerging technology. Struggling Downtowns Are Looking to Lure New Crowds Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law While China hasn't formally embraced stablecoins — digital tokens pegged to traditional currencies — and maintains a sweeping ban on crypto activities, recent remarks from senior central bank officials have given fresh momentum to discussions about their potential role in global payments. People's Bank of China Governor Pan Gongsheng said in June that stablecoins could revolutionize international finance, particularly as rising geopolitical tensions highlight the fragility of traditional payment systems, which he warned can be politicized and used as a sanction tool. At the same Shanghai event, former central bank head Zhou Xiaochuan said dollar-linked stablecoins could facilitate dollarization. Other mainland and Hong Kong financial officials talked about the potential for yuan-based stablecoins to support China's long-running effort to promote its currency on the world stage. Beijing has long been wary of cryptocurrencies, viewing them as a threat to financial stability and capital controls. But economists now see an opening, fueled in part by the Trump administration's growing support for digital tokens. Morgan Stanley suggests China could use Hong Kong to trial offshore yuan-based stablecoins that would avoid violations of Beijing's strict capital rules. 'Stablecoins are not new currencies, but new distribution channels for existing ones,' said Robin Xing, chief China economist at Morgan Stanley. 'It is crucial for China to embrace the trend of sovereign currency tokenization to maintain competitiveness in the digital infrastructure race.' Just hours before Pan and other Chinese officials spoke at the June 18 Lujiazui Forum, the US Senate passed a bill regulating stablecoins, in a major win for the crypto industry and a boost for President Donald Trump's digital asset agenda. Treasury Secretary Scott Bessent said in a June 19 X post that stablecoins could strengthen — not threaten — the dollar's dominance. Bessent told Bloomberg TV on Monday that global users are likely to favor US-backed stablecoins over central bank digital currencies from Europe or China, citing greater trust in the private sector under American regulation than the risk of government control elsewhere. Stablecoins, typically backed by traditional currencies and issued by private firms, are gaining traction as a faster, cheaper option for cross-border payments. Most are pegged to the dollar and backed by US assets like short-term Treasuries, with total supply projected to reach $3.7 trillion by 2030. In response, Chinese economists are urging the development of yuan-linked alternatives. 'If China doesn't develop stablecoins, it will essentially withdraw from the competition for next-generation global currency dominance and hand it to others,' said Shen Jianguang, chief economist at founder Richard Liu reportedly told staff the company plans to apply for stablecoin licenses in all major markets to cut cross-border payment costs by 90% and reduce settlement time to under 10 seconds. Hong Kong has recently introduced its own regulatory framework for fiat-referenced stablecoins, offering licenses to issuers operating in the city. and Ant Group are among the first tech giants expected to apply. Shanghai-listed Zhejiang China Commodities City Group Co., operator of the world's largest wholesale goods market, has also said it plans to seek a license. Offshore yuan stablecoins could help China take advantage of mounting global unease with dollar dominance, especially after it was used as a tool of financial pressure on the Kremlin following Russia's invasion of Ukraine. Interest in the yuan is growing, with more than 30% of China's goods trade settled in the currency in February, the highest in a decade, though its share in global payments remains modest. The growing interest in stablecoins comes as China's own state-backed digital currency, the e-CNY, has struggled to gain traction both at home and abroad. A separate cross-border payments initiative, mBridge, is facing an uncertain future after a main participant, the Bank for International Settlements, pulled out over concerns it could be used to bypass sanctions. Pan recently announced plans for an international e-CNY center in Shanghai, signaling continued interest in promoting its use for trade. China should take a 'dual track' approach to bolster the yuan's global use, according to Li Yang, chairman of the state-backed National Institution for Finance and Development and a former PBOC adviser. That would involve continuing traditional efforts, such as expanding currency swaps and the yuan-based CIPS settlement system, while also leveraging Hong Kong's financial institutions to promote offshore yuan-linked stablecoins. What Bloomberg Intelligence Says ... 'Hong Kong's stablecoins can become Beijing's alternative to sidestep SWIFT, alongside the earlier adopted CIPS and mBridge.' They 'could significantly advance the yuan's global usage. The yuan's adoption faces a setback — transactions via CIPS have yet to reach a critical mass.' — Francis Chan, senior banking and fintech analyst. Click here to read the full report. For now, stablecoins are mostly used for crypto trading instead of business payments, and regulators still need to address risks like fraud and financial crime. While many countries are exploring regulations, key questions remain, like whether stablecoins should be treated as currencies or financial assets. Ultimately, the global status of a currency is determined by the nation's overall power and credibility, not a new means of payment, according to Liu Xiaochun, vice president of Shanghai Finance Institute. Chinese stablecoins may face limits without broader economic reforms, according to Eswar Prasad, a Cornell University professor and author of the book The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance. 'Yuan-linked stablecoins issued in Hong Kong are unlikely to gain much traction in the absence of unification of onshore and offshore exchange markets,' he said. But stablecoins, he added, could nudge Beijing toward change. By complicating exchange rate and monetary policy management, they might 'serve as an incentive to undertake liberalization and market-oriented reforms,' he said. (Updates with additional comment in fourth to last paragraph.) SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House America's Top Consumer-Sentiment Economist Is Worried China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Telegraph
a day ago
- Business
- Telegraph
Trump relaxes US sanctions on Syria
Brad Smith, the treasury department official in charge of sanctions, said the move would 'end the country's isolation from the international financial system, setting the stage for global commerce and galvanising investments from its neighbours in the region, as well as from the United States'. The order, released by the White House, said that Syria had been 'transformed' since the fall of Assad, including through 'positive actions taken by the new Syrian government under President Ahmed al-Sharaa'. The orders still maintain sanctions on members of the former government, including Bashar al-Assad, who fled to Russia late last year. Israel keen to normalise ties Israel said earlier on Monday that it was interested in normalising ties with Syria as well as Lebanon in an expansion of the 'Abraham Accords', which would transform the Middle East. Trump administration officials argued that lifting the sanctions on Syria would better integrate the country into the region. Despite the new Syrian leader's claims to be progressive, the country has seen a series of serious attacks on minorities since the fall of Assad, a largely secular leader from the Alawite minority. At least 25 people were killed and dozens more wounded in a suspected Islamist attack on a Greek Orthodox church in Damascus on June 22. Until Mr Trump's surprise announcement of sanctions relief during a trip to Saudi Arabia, the United States had insisted on progress first in key areas including protection of minorities.
Zawya
10-06-2025
- Business
- Zawya
UAE Ministry of Finance hosts awareness session for Emirati students in China
In a step that reflects the UAE's commitment to expanding the presence of its national talent in international financial institutions Shanghai: The Ministry of Finance, in collaboration with the UAE Consulate General in Shanghai and the New Development Bank, organised an awareness session for Emirati students studying in China as part of the ' UAE Global Cadres ' initiative. Held at the New Development Bank's headquarters in Shanghai, the session aimed to explore recruitment and training mechanisms in multilateral organisations, as well as pathways to build a career in the international financial sector. Attendees included H.E. Muhannad Sulaiman Al Naqbi, Consul General of the UAE in Shanghai; Thuraiya Hamid Alhashmi, Director of International Financial Relations and Organisations Department at MoF and Board Member of the New Development Bank; and Qiangwu Zhou, Vice-President and CAO of the New Development Bank, as well as other senior bank officials. The event is part of the UAE's commitment to expanding the presence of its national talent in the global financial arena and increasing awareness among Emirati students about career opportunities within international financial institutions. Stimulate national talent Ali Abdullah Sharafi, Acting Assistant Undersecretary for International Financial Relations at the Ministry of Finance, said: 'The Ministry is committed to creating an interactive environment that brings together young Emirati talent with influential international organisations to stimulate national talent and enable them to explore career opportunities in the global financial sector.' 'Such meetings offer a direct window into the realities of working in multilateral organisations and give students the opportunity to learn from real-life experiences and discover promising career paths.' Sharafi added, 'We believe that building a strong Emirati cadre on the international stage begins with investing in knowledge and communication, an approach we are committed to advancing through initiatives like these.' Bridges of communication Meanwhile, Ambassador Muhannad Sulaiman Al Naqbi emphasised that the session is a testament to the collaborative efforts between the Ministry of Finance and the UAE's diplomatic missions with both sharing the same goal: empowering the nation's youth to succeed on the global stage. He added, 'The UAE Global Cadres initiative is an extension of the country's diplomatic approach to building bridges of communication between Emirati students and influential global organisations.' 'We hope this session inspires students to explore new horizons in the international financial sector and, in doing so, strengthen their contributions to both the national and global economies,' Al Naqbi said. The session began with a welcome speech by Qiangwu Zhou, who greeted the students and commended the ongoing collaboration between the bank and the UAE. Zhou said, 'We are delighted to host this panel discussion, which highlighted the strong interest and awareness among Emirati students in international business. Investing in young talent has been and will continue to be a top priority for us.' He added, 'Events such as this provide invaluable opportunities to introduce the next generation to fulfilling careers within multilateral organisations, while fostering diversity and expertise in the Bank's future workforce.' Presentations The session explored the importance of the UAE Global Cadres Initiative in empowering Emiratis to pursue career and training opportunities within leading international financial institutions. The initiative supports this goal by offering introductory programmes, specialised knowledge content, and fostering strategic partnerships with entities such as the New Development Bank (NDB). The discussions also touched on the Ministry of Finance's efforts to create an enabling environment for Emiratis seeking to enter multilateral institutions. These efforts include support with application procedures, secondment opportunities, and tailored training programmes. Representatives from the New Development Bank delivered presentations outlining recruitment mechanisms and professional development pathways available within the organisation. They detailed key programmes targeting young talent, application processes, admission criteria, and the skillsets and specialisations most in demand. Students, for their part, actively engaged during the session, posing questions on application requirements, areas of specialisation, and the day-to-day working environment at the bank. This gathering is part of the Ministry's ongoing efforts to deepen strategic partnerships with international financial institutions and expand career opportunities for UAE nationals, driving the country's vision of building a globally competitive and influential national workforce.
