Core Viewpoint - The rise of blockchain technology and cryptocurrencies poses unprecedented challenges to traditional financial systems and global financial governance, particularly through the emergence of stablecoins, which reshape currency circulation mechanisms and impact national sovereignty, cross-border payment systems, and global financial regulation [2]. Unilateral Measures: Optimizing Development Pathways and Governance Capabilities - China should enhance its internal response system to address the challenges posed by cryptocurrencies and stablecoins to national financial sovereignty and regulatory frameworks [3]. - Accelerating the development and application of the digital yuan is crucial for enhancing the international competitiveness of the yuan and addressing cryptocurrency challenges. The Bank for International Settlements (BIS) indicates that Central Bank Digital Currencies (CBDCs) are core tools for maintaining monetary sovereignty and financial stability [4]. - A multi-layered structural system encompassing CBDCs, stablecoins, and digital assets should be gradually established, with the digital yuan as the foundational currency to solidify its core position in domestic payments and settlements [4]. - Promoting interoperability between the digital yuan and emerging financial tools like digital securities and assets is essential for creating a complete financial ecosystem [5]. - Active participation in global digital currency standard-setting and cross-border interoperability construction is necessary to enhance the yuan's usage in international frameworks like the Belt and Road Initiative [5]. - The regulatory approach to cryptocurrencies must leverage advanced technologies to upgrade regulatory capabilities, emphasizing the need for unified international regulatory standards [6]. - Balancing innovation and regulation in the cryptocurrency sector is critical, with countries needing to develop reasonable policies based on their unique financial market conditions [7]. - The regulatory sandbox mechanism can support technological innovation while effectively reducing systemic risks, allowing for a controlled environment to test financial products and services [7][8]. - China should explore the innovation and application of offshore RMB stablecoins in regions like Hong Kong and Macau, leveraging their open market environments and mature financial systems [9]. Multilateral Measures: Promoting Global Governance and International Cooperation - The digital transformation of the international monetary system is essential, driven by the need for more efficient and secure digital currencies, especially in light of the dysfunction of the current system dominated by the US dollar [11][12]. - The digital transformation must avoid unilateralism and prioritize fair and inclusive solutions, with digital Special Drawing Rights (e-SDR) and CBDCs as key focus areas [12]. - Strengthening international regulatory cooperation in the cryptocurrency sector is urgent, particularly in response to the fragmented regulatory landscape exacerbated by recent US policies [14]. - A global regulatory mechanism for stablecoins, especially those pegged to the US dollar, is necessary to mitigate risks associated with cross-border capital flows and financial stability [15]. - Coordinating global regulatory efforts can enhance the resilience of financial markets and reduce regulatory arbitrage in the cryptocurrency sector [16]. - China should advocate for the inclusion of emerging market countries in global financial rule-making to enhance their voice and support in cryptocurrency governance [17]. - Strengthening international research and cooperation in the CBDC field is vital, with a focus on enhancing interoperability in cross-border payments through multilateral research and testing initiatives [18].