Core Viewpoint - The article emphasizes the need for China to develop a unique "Chinese stablecoin solution" that serves the real economy while ensuring financial security and monetary sovereignty, especially in light of global developments in stablecoin legislation and the recent U.S. "GENIUS Act" [2][3][4]. Group 1: Global Context and Legislative Developments - The U.S. "GENIUS Act," passed on July 17, 2025, is the first federal law specifically addressing payment stablecoins, providing a compliance pathway and signaling the significant impact of digital currencies on global financial governance [3]. - The act aims to maintain the dominance of the U.S. dollar in the cryptocurrency space, requiring stablecoin issuers to hold nearly 80% of reserves in short-term U.S. Treasury securities, thereby creating a substantial and ongoing demand for U.S. debt [3]. - The European Union's MiCA legislation, passed in October 2022, focuses on risk prevention and systemic risk management, contrasting with the U.S. approach [3]. Group 2: Hong Kong's Role and China's Opportunities - Hong Kong is positioned as a testing ground for cryptocurrency policies, aligning with U.S. regulatory dynamics while maintaining its currency peg to the U.S. dollar [4]. - The article advocates for China to leverage experiences from the U.S., EU, and Hong Kong to create a distinct regulatory framework for a "Renminbi stablecoin" that supports the real economy and safeguards financial sovereignty [4][5]. - The approval of the stablecoin regulatory framework in Hong Kong on August 1, 2025, marks a significant step in establishing it as a key financial hub for cryptocurrency in Asia [5]. Group 3: Stablecoin Applications and Trade - Stablecoins are increasingly being utilized in international trade, particularly in regions with volatile currencies, providing a low-cost and efficient payment method [6]. - China's manufacturing sector, which accounts for nearly 30% of global output, and its status as the world's largest trading nation, present a strong case for integrating stablecoins into cross-border payment systems [7]. - The potential for a Renminbi stablecoin to enhance the internationalization of the currency and supplement existing cross-border settlement mechanisms is highlighted [7]. Group 4: Recommendations for Implementation - The article suggests piloting stablecoin applications in Free Trade Zones (FTZs) such as Shenzhen Qianhai and Hainan Free Trade Port to cautiously explore regulatory frameworks [9]. - Specific recommendations include establishing a "cross-border fintech laboratory," creating a stablecoin "white list," and encouraging offshore Renminbi stablecoin trials to facilitate trade and payment efficiency [10][11]. - A focus on building a robust regulatory technology platform and enhancing blockchain infrastructure is essential for effective monitoring and compliance in stablecoin transactions [12]. Group 5: Risk Management and Compliance - The establishment of strict entry requirements for institutions and individuals participating in stablecoin transactions is crucial, limiting participation to compliant entities [13]. - Regular audits of reserve assets by third-party firms and transparent reporting are necessary to ensure the security and adequacy of stablecoin reserves [13]. - A comprehensive risk management framework should be implemented to monitor and mitigate potential compliance and capital flow risks associated with stablecoin usage [14].