Hong Kong Can Be China’s Stablecoin Staging Ground, Policy Adviser Says
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As one of the world’s frontrunners in promoting and regulating stablecoins, Hong Kong is the ideal place for China to develop offshore yuan-pegged stablecoins, which could contribute to internationalizing the redback, a top policy adviser said.
“Stablecoins play a key role in today’s international monetary and financial landscape,” said Li Yang, chairman of the National Institution for Finance and Development (NIFD), on Tuesday at an investor summit hosted by China Securities Finance Co. Ltd. in Shanghai. The NIFD is a state-backed think tank providing policy advice to the Chinese government.
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- Hong Kong is positioned as an ideal hub for developing offshore yuan-pegged stablecoins to aid in yuan internationalization, according to NIFD chairman Li Yang.
- Li emphasized stablecoins' growing integration with traditional finance and CBDCs, and suggested a dual strategy leveraging both Hong Kong's and Shanghai's financial strengths.
- Tether launched an offshore yuan stablecoin, now with over 20 million yuan ($2.8 million) in circulation; China continues strict cryptocurrency controls domestically.
- China Securities Finance Co. Ltd.
- China Securities Finance Co. Ltd. hosted an investor summit in Shanghai. At this summit, Li Yang, chairman of the National Institution for Finance and Development (NIFD), delivered a speech on the role of stablecoins in the international financial landscape.
- Tether
- Tether is a major stablecoin issuer that created USDT (a stablecoin pegged to the U.S. dollar). It also launched an offshore yuan-pegged stablecoin, which has over 20 million yuan in circulation.
- Starting in 2017：
- Beijing began cracking down on cryptocurrencies, banning initial coin offerings, shutting down domestic exchanges, outlawing crypto mining, and prohibiting financial institutions from offering crypto-related services.
- As early as 2019：
- Tether launched an offshore yuan stablecoin.
- May 2025：
- Hong Kong’s Legislative Council passed the Stablecoins Bill, signaling the impending rollout of a licensing regime for stablecoin issuers later in 2025.
- As of 2025：
- Tether’s offshore yuan stablecoin has over 20 million yuan ($2.8 million) in circulation.
- June 17, 2025：
- Li Yang, chairman of NIFD, spoke at an investor summit in Shanghai about the role of stablecoins and policy recommendations for China.
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