Local governments actively discuss stablecoins supporting foreign trade, related concept stocks perform actively.

On July 10, the Party Committee of the Shanghai State-owned Assets Supervision and Administration Commission held a central group study meeting to discuss the development trends and countermeasures of cryptocurrencies and stablecoins. The next day, A-share digital currency and blockchain concept stocks continued to strengthen in the afternoon. Previously, Wuxi also held a special meeting to explore the application prospects of stablecoins in foreign trade development. These trends may echo the speech of central bank governor Pan Gongsheng at the Lujiazui Forum in June.

Meanwhile, on the afternoon of July 11, the price of Bitcoin reached a new high. Data from a trading platform shows that BTC surpassed 118,000 USD, quoted at 118,050 USD per coin, with a daily increase of 5.96%.

Shanghai State-owned Assets Supervision and Administration Commission: Focus on Digital Currency Research and Blockchain Applications

At the central group study meeting, He Qing, Secretary of the Party Committee and Director of the Shanghai Municipal State-owned Assets Supervision and Administration Commission, emphasized the need to implement the spirit of the municipal party committee's plenary session, maintain sensitivity to emerging technologies, and strengthen research on digital currency. He proposed exploring the application of blockchain technology in areas such as cross-border trade, supply chain finance, and asset digitization, promoting the deep integration of technology, finance, and industry, and making greater contributions to the construction of Shanghai's "five centers."

This trend coincides with the upcoming implementation of the Hong Kong "Stablecoin Regulation" on August 1. At that time, the Hong Kong Monetary Authority will begin accepting license applications. Currently, the Monetary Authority is soliciting market opinions on the specific implementation guidelines.

On July 11, Hong Kong stock stablecoin concept stocks performed strongly in the morning, with many related companies' stock prices rising sharply. Subsequently, A-share digital currency and blockchain concept stocks continued to strengthen in the afternoon, with several individual stocks showing significant gains.

Wuxi Explores Stablecoin Empowerment for Foreign Trade

On July 4th, the Wuxi Municipal Party Committee held a special meeting to promote key reform tasks. The meeting mentioned exploring the practical path of using stablecoins to support the development of foreign trade, in order to expand the growth space of digital trade, green trade, and service trade, and to enhance the development level of cross-border e-commerce, intermediate goods trade, and offshore trade.

Recently, an investment company signed a memorandum of understanding with the Yanji city government to carry out digital economy-related business in Hong Kong. This cooperation involves designing a multilateral points exchange system for cross-border tourism consumption in Yanji, using blockchain technology to ensure transparent point issuance, and connecting the point systems of merchants in China, South Korea, and Russia through offshore RMB stablecoin.

Think Tank Suggestion: The Development of the Renminbi Stablecoin Should "Combine Internal and External Factors"

The exploration of stablecoins in Shanghai and Wuxi may be a response to the speech by the central bank governor Pan Gongsheng at the Lujiazui Forum in June this year. Pan Gongsheng pointed out that the application of new technology in the field of cross-border payments is accelerating, promoting the development of central bank digital currencies and stablecoins, reshaping the traditional payment system, shortening the cross-border payment chain, while also posing challenges for financial regulation.

Yang Tao, deputy director of the National Finance and Development Laboratory, suggested that the development of the renminbi stablecoin should adopt a "domestic offshore + foreign offshore" linkage model, coordinating pilot projects in the Shanghai Free Trade Zone and the Hong Kong market. He proposed to build a mechanism that combines wholesale and retail, with on-chain issuance, to achieve compliance management through technological means, and recommended the establishment of a dual currency system with CNYC (domestic offshore renminbi stablecoin) and CNHC (foreign offshore renminbi stablecoin).

Beware of illegal activities carried out under the name of stablecoin

However, the rapid development of stablecoins has also raised market risk awareness. Recently, an illegal platform named "Xin Kang Jia" was exposed for conducting fraudulent activities under the guise of stablecoins. This platform impersonated a well-known exchange to attract funds, promising high returns and inducing the development of members.

Relevant departments in Shenzhen and Beijing have also issued risk warnings, alerting the public to be vigilant against illegal fundraising activities carried out under the guise of stablecoins and other names. These activities may lure investors through false promises of high returns and pool operations, posing issues such as lack of qualifications, concept packaging, and risk spillover.

Overall, as local governments accelerate their exploration of stablecoin applications in foreign trade and other areas, the development prospects of digital currency and blockchain technology in China are gradually becoming clear. However, it is also necessary to be vigilant about potential risks and strengthen regulation to ensure healthy market development.