China’s stablecoin drama is like a high-stakes sitcom mixed with a little street hustle. For years, China’s been cautious, like the stern boss who doesn’t let just anyone play with the company credit card.
Stablecoins have been watched closely, no wild spending allowed. But now? The scene’s shifting, and Hong Kong’s the new testing ground for this digital money hustle.
Capital outflow
Picture it, regulators calling in the crypto heads, saying, we want stablecoins alright, but only if they fit our rules, our style, and especially keep that cash in check.
Capital outflow? Yeah, they’re worried it’s like money sneaking out the back door, and they’re not having it.
So, Hong Kong’s passed laws letting a select few issue fiat-backed stablecoins, but don’t get your hopes up, only a handful of licenses will be handed out next year, with just one major Chinese bank stepping up initially. It’s like a VIP club where the guest list is tight.
Pan Gongsheng, the Central Bank big shot, admits these stablecoins are changing the old-school payment systems.
But, he’s also throwing shade at dollar-backed tokens, worrying they’re just giving Uncle Sam more sway worldwide.
Funny thing? Chinese state-owned companies are eyeing stablecoins as their next payment weapon anyway. It’s a game of cautious love, you might say.
China’s only regulated public blockchain
Now, here’s where the tech chops come in, because a stablecoin’s got to stand on a blockchain strong enough to hold its own. Enter the contenders, like Conflux and ChainMaker.
According to an analyst named Frank from local media PANews, Conflux’s the top dog for this fight.
Why? It’s China’s only regulated public blockchain with its own native token, CFX. That’s like having the keys to the club and VIP access, big perks for building a stablecoin business.
ChainMaker, on the other hand, flexes enterprise-grade muscle and Beijing’s blessing. It’s pulling big state-owned companies into its orbit, making it strong at home.
But its consortium chain setup might tie it down when it comes to playing internationally.
Think of it like a city boss who’s mighty locally but hasn’t got the connections overseas.
Permissioned blockchain
Then, there are BSN and Xinghuo, China’s permissioned blockchains running without native tokens.
Solid on domestic business, sure, but their tokenless nature might cramp stablecoin plans compared to Conflux’s public chain swagger.
So, Frank’s call? Conflux lines up best with international standards, giving China’s stablecoin dreams the edge to go global.
The industry’s changing, the players are set, and this cryptocurrency showdown is just heating up.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: August 8, 2025 • 🕓 Last updated: August 8, 2025
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