China Economic Times: Promoting RMB Internationalization with Offshore RMB Stablecoins

According to an article published by China Economic Times, developing an offshore RMB stablecoin is a key measure to accelerate the internationalization of the renminbi. It is also an important means to mitigate the uncertainties arising from the development of the "digital currency bridge," and will not affect the mainland’s monetary policy regulation or cross-border capital management. A gradual approach is recommended for the development pace, starting from Hong Kong and gradually expanding to domestic free trade zones and free trade ports, thereby continuously strengthening support for the internationalization of the renminbi. Shen Jianguang, Chief Economist of JD Group, and Zhu Taihui, Senior Research Director of JD Group, stated that stablecoins and crypto digital currencies have entered a phase of rapid growth. Especially since the second term of U.S. President Trump, the United States has actively promoted the development of stablecoins and crypto digital currencies, prompting countries around the world to re-examine the development of crypto digital currencies, particularly stablecoins. For China, developing an offshore RMB stablecoin is a key measure to accelerate the internationalization of the renminbi and an important means to mitigate the uncertainties of the "digital currency bridge," without impacting the mainland’s monetary policy regulation or cross-border capital management. A gradual approach should be adopted, accumulating experience and improving mechanisms in Hong Kong first, and then, following the model of "offshore first, then onshore," gradually expanding from Hong Kong to domestic free trade zones and free trade ports, thereby continuously strengthening support for the internationalization of the renminbi.