China’s Stablecoin Panic: A Most Curious Affair 🧐

It seems our friends in the Middle Kingdom are experiencing a touch of what one might call… FOMO. Yes, a veritable fit of pique over the success of these digital baubles – stablecoins, you know – that are rather monopolized by the Americans. They propose to launch renminbi-backed versions, naturally, but, oh dear, the prospect of capital fleeing the country is proving a slight impediment. A tragedy, really. 🎭

China is bravely attempting to emulate success – a charmingly human impulse.
The pursuit of this ambition is, unsurprisingly, complicated by a deep-seated need to control absolutely everything.

The Financial Times, that arbiter of all things financially tedious, has revealed that Chinese officials are earnestly testing these stablecoins as a means of circumventing the rather frightful possibility of being cut off from Swift in the event of… disagreements with the United States. One does hate to think of such vulgarities, naturally.

They’ve been consulting ‘experts’ – a dubious profession if ever there was one – on the best way to issue these tokens. Though, ironically, the very technology of a stablecoin seems to rather contradict China’s rather strenuous efforts to maintain an iron grip on its financial system. A delightful paradox!

Apparently, any approved stablecoin must adhere to China’s “specific national conditions.” Which, I suspect, translates to “do exactly as we tell you.” One imagines a significant lack of artistic license. 🙄

Considering the complete prohibition of cryptocurrency transactions and mining (since the rather draconian measures of September 2025), the ambition to participate in the global digital landscape seems… optimistic. A touch naive, perhaps?

The central bank is, quite understandably, perturbed by the potential for money laundering. As if the world wasn’t riddled with that already! And the technology, as a rather astute Ms. Liao of Saga points out, is simply not “centrally controlled.” The sheer audacity of it! Funds flowing without permission…the horror! 😱

“When they invest in this technology it will be taken to places that they do not like,” she declared. A rather pointed observation, wouldn’t you agree?

A Fear of Being Left Behind

Hong Kong, always eager to please, has passed its Stablecoin Ordinance. Naturally, everyone is clamoring for a license – JD.com, Animoca Brands, Standard Chartered…the usual suspects. The Chinese, of course, also desire one. But it appears only one of the four dominant state-owned banks will be granted this privilege. Clearly, exclusivity is the key to maintaining an air of importance.

The HKMA hasn’t entirely dismissed the idea of renminbi-backed stablecoins, a small mercy. But the regulators are, unsurprisingly, reconsidering their staunch opposition to digital assets. The relentless march of progress, you see. It’s terribly inconvenient. 😒

Recent shifts in global regulation – a tiresome American Act and the aforementioned Hong Kong Ordinance – have focused attention on stablecoins. Even the South Koreans are getting involved, dreaming of won-pegged tokens. The competition is positively fierce! One almost feels sorry for the regulators. Almost.

And now, fanC and Initech are debuting a Korean won-pegged stablecoin in a pilot program! It remains to be seen if it will actually launch, though. One can never be too sure, can one? It is always prudent to remain skeptical of all this modernity.

2025-08-07 11:21

A Fear of Being Left Behind

Read More