Recently, there have been reports that China is considering easing its regulatory policies on Crypto Assets, possibly allowing for the first time a stablecoin based on the renminbi. This move aims to promote the internationalization of the renminbi and marks a significant shift in China's attitude towards Crypto Assets.

Since the comprehensive ban on Crypto Assets trading and mining in September 2021, China’s attitude towards stablecoins seems to have softened. It is expected that relevant policies to promote the internationalization of the Renminbi, including strategies to respond to US dollar stablecoins, will be discussed at the upcoming State Council meeting.

The main application scenarios for the Renminbi stablecoin will be cross-border trade and payments. This topic is expected to be discussed in depth at the upcoming Shanghai Cooperation Organization summit to be held in Tianjin. It is reported that Hong Kong and Shanghai have been identified as the first key areas for policy implementation.

Currently, the RMB ranks sixth in global payment value, accounting for about 2.9%. In the global stablecoin market, the US dollar holds 98% of the market share. The Governor of the People's Bank of China, Pan Gongsheng, previously stated that it is necessary to reduce excessive reliance on a single currency and establish a center for the internationalization of the digital RMB.

The launch of the Renminbi stablecoin not only aligns with China's strategic goal of promoting currency internationalization, but also serves as a positive response to changes in the global financial landscape. This move may help the Renminbi gain more voice on the international stage, while providing greater convenience for Chinese enterprises' cross-border operations.

However, the launch of the Renminbi stablecoin also faces many challenges, including how to ensure its stability, how to effectively regulate it, and how to gain widespread recognition in the international market. The Chinese government needs to carefully weigh the pros and cons and develop a comprehensive policy framework to ensure the smooth launch and healthy development of the Renminbi stablecoin.

With the rapid development of global financial technology, countries are actively exploring the application of digital currency and stablecoins. China's movements in this field will undoubtedly attract widespread attention from the international community and may have a profound impact on the global financial system.