Core Viewpoint - The development of central bank digital currencies (CBDCs) and stablecoins is being significantly influenced by new technologies such as blockchain and distributed ledgers, while also posing challenges for financial regulation [1] Group 1: Stablecoin Development - The upcoming implementation of the Stablecoin Regulation in Hong Kong on August 1 has sparked unprecedented discussions about stablecoins [1] - There is a growing consensus that offshore RMB stablecoins should be piloted in the Hong Kong market before exploring domestic options in free trade zones [1][2] Group 2: Regulatory Considerations - A dual development model for domestic and offshore RMB stablecoins is recommended to proactively address the rapid evolution of stablecoin regulations globally [2] - The limited scale of the Hong Kong offshore RMB market may hinder the independent support of RMB stablecoins, necessitating a coordinated regulatory approach [2] Group 3: Innovation in Free Trade Zones - The Shanghai Free Trade Zone has established a regulatory framework aligned with international trade rules, and there are ongoing efforts to support its development as an international financial center [3] - Two potential models for domestic offshore RMB stablecoin (CNY Coin, CNYC) issuance are proposed, involving collaboration among clearing organizations, banks, and payment institutions [3][4] Group 4: Compliance and Risk Management - Regardless of the model, it is essential to ensure sufficient asset reserves for RMB stablecoins, including a proportion of digital RMB, to align with central bank initiatives [5] - The issuance entities must establish robust compliance mechanisms to manage risks and expand application scenarios for RMB stablecoins [5] Group 5: Cross-Border Integration - A dual RMB stablecoin system (CNYC and CNH Coin, CNHC) could be developed, allowing for collaboration between domestic and foreign institutions [6] - The CNHC aims to enhance Hong Kong's role in the internationalization of the RMB and facilitate efficient payment settlements in cross-border trade [6][7] Group 6: Future Directions - Continuous collaboration between regulatory bodies and stablecoin issuers is crucial for monitoring and preventing illegal activities within the blockchain ecosystem [7] - The exploration of RMB stablecoins should be cautious and gradual, with an emphasis on developing relevant legal frameworks to strengthen China's position in the global stablecoin landscape [7]

Group 1 - The International Bank for Settlements (BIS) has issued a "cooling" signal regarding the rising popularity of stablecoins, suggesting that central banks accelerate the tokenization process while highlighting the poor performance of stablecoins in key tests necessary to become a pillar of the monetary system [1][2] - Stablecoins are defined by BIS as a gateway to the crypto ecosystem, designed to maintain stable value relative to fiat currencies, primarily the US dollar [1] - BIS identifies three critical tests for stablecoins: singularity, elasticity, and integrity, which they have failed to meet, thus limiting their role in the monetary system [1][2] Group 2 - Concerns have been raised about stablecoins due to their anonymous nature, which allows circulation without issuer regulation, leading to potential use in money laundering and terrorism financing [2] - BIS acknowledges the uncertain future role of stablecoins but emphasizes that their poor performance in the three tests suggests they can only play a supportive role, with guidelines to integrate legitimate use cases into a regulated monetary system [2] - Despite concerns, BIS recognizes the value of tokenization in areas like cross-border payments and securities markets, proposing a new financial market infrastructure called "Unified Ledger" to facilitate the transformation of the monetary system [2]

Core Viewpoint - The International Bank for Settlements (BIS) has issued a severe warning regarding stablecoins, highlighting their threats to monetary sovereignty and increased capital flight risks, while the XBIT decentralized exchange platform is emerging with its XAUT gold tokenization project as a potential solution to the stablecoin dilemma [1][3]. Summary by Sections BIS Warnings on Stablecoins - The stablecoin market has surpassed $260 billion, with 99% pegged to the US dollar, but it harbors three major crises: erosion of monetary sovereignty, transparency issues, and systemic risks exemplified by the 2022 TerraUSD collapse [1][3]. BIS's Vision for Tokenization - BIS advocates for accelerated currency tokenization, proposing a unified ledger system centered around Central Bank Digital Currencies (CBDCs) to achieve instant, low-cost, and transparent global payments and securities transactions, although it faces challenges such as rule-making disputes and sovereignty concerns [3][4]. XBIT's XAUT Gold Tokenization Project - XBIT's XAUT project offers a new approach by backing each token with physical gold, ensuring transparency through 24-hour on-chain audits, thus addressing the authenticity of reserves [4][6]. - XBIT's three core advantages include a decentralized security architecture using zero-knowledge proof technology, compliance and transparency with LBMA-certified gold reserves, and cross-chain ecosystem support that lowers investment barriers [4][6]. Market Impact and Future Plans - XAUT has achieved a circulation of over $500 million within three months, with institutional investors accounting for over 40%, positioning it as a solution against inflation and a tool for cross-border payments [6][8]. - XBIT aims to develop a "multi-asset unified ledger" to tokenize traditional assets like government bonds and real estate, potentially challenging the central role of central banks as outlined in the BIS report [6][8]. Controversies and Responses - Despite market acceptance, criticisms persist regarding gold price volatility, regulatory uncertainties, and centralization risks associated with XBIT's control over project audits [8]. - XBIT's CEO emphasizes that the goal is not to replace central banks but to provide a more transparent and efficient alternative, advocating for user-driven construction of the unified ledger [8].