China closely monitors Stablecoin developments while using Hong Kong as a test for innovation in digital money.
Financial regulators have intensified discussions on Stablecoin strategies, emphasizing compatibility with national conditions and capital control problems.
Prudent Stablecoin of China strategy
Chinese financial regulators have recently summoned cryptocurrency experts to discuss stable trends and implementation strategies, the Financial Times reported. A key message was that Stablecoin projects must be compatible with the specific national conditions of China, a participant revealed. In addition, the central bankers have warned repeatedly and openly potential risks to exit the capital of Stablecoin projects.
Hong Kong serves as a Chinese cryptocurrency laboratory after continental negotiation bans. The territory has adopted legislation allowing approved companies to issue stablescoins supported by Fiat. However, the HKMA plans to grant only a handful of licenses from next year, including one of the four main Chinese state banks initially.
While the Governor of the Central Bank, Pan Gongsheng, acknowledged that the stablecoins have reshaped the traditional payment landscape, Chinese decision -makers fear that the tokens supported in dollars reinforce the domination of American currency worldwide. Oh, on the other side, Chinese companies belonging to the State show growing interests in the requests for implementation for payments and regulations.
Several public companies with Hong Kong operations are looking for Stablecoin licenses, and the authority has not excluded stablecoins supported by the offshore renminbi.
Hypothetically, Coinfulx and Chaskaker
Beyond the regulatory frameworks, the stablecoin of China, if carried out, depends strongly on the infrastructure capacities of underlying blockchain.
An analyst named “Frank” of local Chinese cryptographic media, Panews, theoretically identifies Conflux as the main candidate of the Stablecoin infrastructure in China. The platform works uniquely as the only regulated public blockchain in China with native CFX tokens. This exceptional status could offer crucial advantages for the development of stablescoin.
On the other hand, Frank also stresses that Chainmaker has a business quality infrastructure and solid Perse’s political support. The platform attracts large public enterprises and appears in government planning documents. However, its consortium chain structure could limit international stablecoin applications.
BSN and Xinghuo represent the approach of the authorized Blockchain of China without native tokens. Frank theoretically notes that their industrial concentration effectively meets domestic needs. However, their architecture without token could limit the compatibility of stables compared to the characteristics of the public chain of Conflux.
The analyst hypothetically concludes that the international alignment of conflux standards positions him best for the ambitions of the stable of China.
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