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

Written by: AIMan@Golden Finance

What is a hot topic that both China and the United States are discussing simultaneously in June 2025? It is definitely stablecoins.

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

On the same day, the first 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 surged continuously 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 subsequently surged again. As of the time of writing, Circle has surpassed $240. Within 15 days of its listing, Circle's stock price has nearly increased by 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 Pan Gongsheng, the governor of the People's Bank of China, mentioned stablecoins for the first time at the annual Lujiazui Forum on June 18.

With the successive passing of stablecoin bills in Hong Kong and the U.S., the crazy rise of Circle's stock, and the attention from top figures in China like Liu Qiangdong and the central bank governor towards stablecoins, it is clear that stablecoins are gaining momentum.

How to cope with the strong impact of the US dollar stablecoin? There has been vigorous discussion about stablecoins from various sectors, including government officials, entrepreneurs, economists, national think tanks, and brokerages. Related conference calls, articles, research reports, and speeches have emerged one after another, making it a topic that is "always mentioned" and leading to a lot of reflection and suggestions regarding the Renminbi stablecoin, the internationalization of the Renminbi, and even cryptocurrency policies.

It is stablecoins that have caused mainstream officials in China to start taking cryptocurrencies seriously. They have even made a 360-degree turn in their attitude towards it.

In order to gain a comprehensive understanding of the latest views and attitudes of mainstream figures from China's political, business, and academic circles towards stablecoins and even cryptocurrencies, Golden Finance has organized statements from relevant individuals across various sectors. From this, we may glimpse the measures that China will take in response to the impact of the US dollar stablecoin. As follows.

Government High-Level

People's Bank of China and 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 System (referred to as Cross-Border Payment Link). The Cross-Border Payment Link officially went live on June 22. By directly connecting the Mainland online payment interbank clearing system with Hong Kong's Rapid Payment System "Faster Payment System", efficient, convenient, and secure cross-border payment services are provided for residents of both places. (Analysts generally believe that this move may form a new channel for "Onshore RMB - Cross-Border Payment Link to Hong Kong - (HKD/RMB) Stablecoin Global Circulation" for the internationalization of the RMB.) 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 central bank governor, mentions stablecoins for the first time: Emerging technologies such as blockchain and distributed ledgers are driving the robust development of central bank digital currencies and stablecoins, achieving "payment is settlement," fundamentally reshaping the traditional payment system, significantly shortening the cross-border payment chain, while also posing huge challenges to financial regulation. Technologies such as smart contracts and DeFi will continue to promote the evolution and development of the cross-border payment system. Source: 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, so we must remain vigilant at all times. There is a need for in-depth research on the potential impact of dollarization on the economies of different countries, especially in those that have not yet fallen into high inflation or high debt crises, to determine whether dollarization is truly suitable for them. Source: Zhou Xiaochuan: US dollar stablecoin may assist dollarization.

Paul Chan Mo-po, Financial Secretary of Hong Kong: Hong Kong is cautiously advancing the development of stablecoins, reflecting its role as a "firewall" and a "testing ground" under the "one country, two systems" principle, providing experience and reference for national financial development. Hong Kong has adopted a more open model, allowing licensed issuers to choose different fiat currencies as the anchor currency for issuing stablecoins. Source: Secretary's Essays

Xu Zhengyu, Secretary for Financial Services and the Treasury of Hong Kong: The Hong Kong stablecoin regulation allows different fiat currencies to be used as the underlying reference for stablecoins. From a regulatory perspective, the possibility of stablecoins being pegged to the Renminbi cannot be excluded. If this is to be done, the overall exchange rate and monetary policy of the country must be taken into account. Source: Xu Zhengyu: Hong Kong regulations do not rule out the possibility of stablecoins 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. By obtaining these stablecoin licenses, we can achieve currency exchanges between 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 stablecoins can serve as a global payment method. Source: Transcript of Liu Qiangdong's small-scale exchange meeting.

Mike Gang, Angel Investor: Currently, the introduction of the US dollar stablecoin bill is another heavyweight means of international monetary competition. Many countries around the world are concerned about the US's ability to meet its debt obligations. The issuance of US dollar stablecoins provides significant purchasing power for US Treasury bonds. The strength of the US lies in its ability to turn crises into opportunities and even change the rules of the game. I suggest that relevant Chinese authorities should take immediate action to formulate relevant systems and legislation to promote the issuance of offshore RMB stablecoins. This is because the globalization of the RMB is a significant long-term strategy that concerns the welfare of the Chinese people. The circulation of physical goods manufactured in China around the world is a manifestation of China's national strength, but please remember that currency is also a special and the highest level of commodity; this is basic knowledge taught in undergraduate courses. I believe this is what is meant by the combination of soft power and hard power. Source: Predictions from 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 Q4 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 may first 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. Ultimately, whether the offshore RMB stablecoin can be realized still depends on the regulatory environment in the mainland. Source: Ten Questions for 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 a major beneficiary of the benefits of stablecoin cross-border payments. 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. Their development process will profoundly influence the future direction of the global financial landscape and the 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 global mainstream currency status of the dollar, and its impact on China is multidimensional, having reached a stage where active response is necessary. China could consider using Hong Kong as a testing ground for offshore RMB stablecoin pilots, exploring its collaborative mechanism with central bank digital currency. Source: Stablecoins: A New Stage in the Evolution of Currency

Economists and National Think Tanks:

"China Economic Times" Stablecoin Special Planning: "China Economic Times" is a newspaper sponsored by the State Council Development Research Center.

Shen Jiangguang, Chief Economist of JD Group: Developing a RMB stablecoin is a means to respond to the new U.S. cryptocurrency policy and is a new lever to accelerate the internationalization of the RMB. It is advisable to launch an offshore RMB stablecoin in Hong Kong as soon as possible, rather than delaying. The development of stablecoins has strong scale effects and network effects, making it very difficult for latecomer stablecoins to catch up with first-mover stablecoins. Source: Using offshore RMB stablecoins to promote RMB internationalization.

Deng Jianpeng, Professor at the Central Political and Legal Affairs University: Global cryptocurrency asset regulation is shifting from allowing "barbaric growth" in the past to "rule restructuring" today. In light of this trend, China needs to avoid missing technological revolution opportunities due to policy lag while firmly maintaining the bottom line of financial security, proactively participate in rule-making, and gain discourse power. Source: Deng Jianpeng: Trends in Global Cryptocurrency Asset Regulation and China's Response.

Li Yang, former vice president of the Chinese Academy of Social Sciences and chairman of the National Institute of Finance and Development: The United States is promoting stablecoin legislation, with the clear legislative purpose of serving the interests of the US dollar. The stablecoin mechanism cleverly transforms the expansion of the cryptocurrency market into an extension of the 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. On the one hand, it must firmly promote the internationalization of the RMB; on the other hand, it must recognize that the trend of the integration and development of stablecoins, cryptocurrencies, and the traditional financial system will be difficult to reverse.

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

Yang Tao, Deputy Director of the National Financial and Development Laboratory: In the face of 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 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 RMB stablecoin, aiming to secure a place in the global fiat-collateralized stablecoin market as soon as possible. Source: Understanding the Theoretical and Practical Logic of RMB Stablecoins.

Shen Jianguang, Chief Economist of JD.com, wrote in a financial magazine under the Joint Office (formerly known as the "Securities Exchange Research and Design Joint Office"): It is suggested that China, in line with its national conditions, should first support Hong Kong Special Administrative Region to quickly pilot the launch of offshore RMB stablecoins. Subsequently, following a gradual model of "offshore first, then onshore," promote the development of offshore RMB stablecoins from Hong Kong Special Administrative Region to the mainland free trade zones and free trade ports, providing a new engine for the internationalization of RMB. Source: Shen Jianguang, Zhu Taihui, Wang Ruohan, Intentions and Insights of the US Stablecoin Act.

Zhang Ming, Deputy Director of the Institute of World Economy and Politics, Chinese Academy of Social Sciences: The development of the US dollar stablecoin may enhance the dollar's position in the global currency landscape. Other countries should pay close attention and respond proactively, and quickly develop their own stablecoins or central bank digital currencies to ensure they do not fall behind in the wave of digital currency competition. Source: Zhang Ming: We should place great emphasis on the development of global stablecoins.

Shanghai Development Research Foundation: In its second term, the Trump administration vigorously pushed forward the US dollar stablecoin legislation, not only to promote financial innovation, but out of multiple strategic considerations, including trying to maintain the dominance of the US dollar, competing for dominance of distributed financial rules, and providing new channels for US debt demand. In order to steadily promote the development of RMB stablecoins, it is recommended to adopt the model of "offshore first, then onshore and offshore, and gradually promoted". Source: Workshop: About Global Stablecoins and RMB Stablecoins

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

Wang Yongli, former vice president of Bank of China: The field of stablecoins and crypto assets has become a battleground for large merchants and even countries. China needs to adjust its policies regarding crypto assets and stablecoins, at least to actively engage in the development of crypto assets 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:

CICC: The Hong Kong stablecoin legislation allows the issuance of non-US dollar stablecoins, which can expand the use of non-US dollar currencies in international payments, settlements, and investment financing scenarios, accelerating the process of internationalization. In summary, the Hong Kong stablecoin legislation has a profound impact on the internationalization of currencies. Source: CICC: The Potential Impact of Stablecoins on the Financial System

Zhongtai Securities: At the current stage, stablecoins act as amplifiers of the dollar's circulation ability. Stablecoins do not challenge the credit nature of the dollar, but they are quietly rewriting the circulation pathways of the dollar, the choices of fund allocation, and the pricing methods of global capital—this is a revolution about "pathways" rather than "currency." Stablecoins have not subverted the monetary status of the dollar, but they are changing the way the dollar plays its global role. This is a quiet change in the operation of the dollar system, and its impact may be more profound than it appears. Source: From Dollar Hegemony to Dollar On-Chain: How Stablecoins Restructure Global Fund Pathways?

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

Huatai Securities: The United States and Hong Kong are taking a positive approach to the regulation of stablecoins, viewing them as an important component of future digital financial infrastructure. Both hope to further enhance the influence of fiat currencies and solidify their respective financial centers through proper management of stablecoins. Source: Diverse Finance: Ten Questions About Stablecoins

Galaxy Securities: China is expected to launch a renminbi stablecoin in the future. Firstly, the launch of US dollar stablecoins will suppress "weaker" currencies, and the renminbi needs to enhance its usage scenarios. Secondly, China's globalization process will inevitably require joining the on-chain financial system. Thirdly, powerful nations need strong finances. Strong finance also needs to have a foothold in the on-chain financial sector. Finally, it will still take a long time for the renminbi to surpass the US dollar under the traditional framework, while the blockchain currency system provides an opportunity for the renminbi to overtake in a bend. Source: Zhang Jun: Stablecoins coming out of the jungle.

Zhaoshang Macro: Stablecoins have deeply intervened in the competition and reshaping of the international monetary system, becoming a strategic tool for 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 RMB stablecoins provide new pathways for the internationalization of the RMB, representing a significant breakthrough in promoting RMB internationalization and providing an important vehicle for the reconstruction of RMB asset valuation. Source: The Essence and Investment Value of Stablecoins.