Shanghai Launches Strategic Stablecoin Study Amid China’s Crypto Ban

Shanghai is hosting its first secret study session focusing on stablecoins, even as China maintains a national ban on cryptocurrencies.

This confidential, closed-door meeting—organized by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) and chaired by He Qing—marks a pivotal shift in the national conversation.

The session centered on how public enterprises could leverage blockchain technology, with particular attention to applications in cross-border trade and supply chain management.

This is the first time stablecoins have been addressed explicitly within China’s official regulatory framework—a notable development in a nation where crypto activity remains officially prohibited.

He Qing underscored the necessity of understanding emerging technologies and intensifying research into digital currencies.

It seems that Chinese authorities are ready to experiment with certain innovations, as long as they remain under the state's control.

The discussions will be focused on the digitization of assets and utilizing blockchain for supply chain optimization.

This strategic exploration stands in contrast with recent warnings from Shenzhen authorities about stablecoin-related scams, highlighting a dynamic and regionally varied approach to digital assets.

Stablecoins Framed as Financial Instruments

Industry analysts, including Sam MacPherson, CEO of Phoenix Labs, note that China appears to view stablecoins not as speculative investments, but as sovereign financial instruments.

This distinction positions stablecoins as tools for enhancing efficiency in state-sanctioned finance and trade, separating them from the broader cryptocurrency ecosystem.

For the first time, the governor of the People’s Bank of China, Pan Gongsheng, publicly addressed the topic of stablecoins at the 2025 Lujiazui Forum.

Pan acknowledged the transformative impact of blockchain, specifically how new technologies are rapidly reshaping international payments and settlement systems.

This official recognition demonstrates Beijing’s understanding of the significant geopolitical role stablecoins could play in the quest for global monetary sovereignty.

Regional Variation and Coordinated Experimentation

China’s approach to digital assets is far from monolithic. While Hong Kong takes a progressive stance on crypto and digital asset regulation, Shenzhen adheres strictly to central government directives, and Shanghai is now emerging as a site for state-backed experimentation.

According to MacPherson, this apparent inconsistency actually masks a coordinated nationwide experiment, allowing China to explore various regulatory and technological models in parallel.

China’s calculated approach reflects broader regional momentum. South Korea, Singapore, and Hong Kong are rapidly building stablecoin infrastructure and regulatory frameworks of their own.

Simultaneously, Beijing is keeping a close watch on U.S. legislative efforts, including the GENIUS Act, which could grant stablecoins legal status in America.

China is advancing its digital currency agenda with incremental yet meaningful steps.

Rather than opting for outright acceptance or an uncompromising ban, authorities are pursuing a strategy of cautious In this environment, stablecoins are emerging as crucial instruments in the country’s ongoing digital finance transformation—a development that could have lasting implications for the digital yuan’s role in the future global economy.