With the rapid development of global digital finance, China's attitude towards stablecoins is quietly changing. This shift is underpinned by deep strategic considerations and economic interests.

In recent years, China has maintained a strict control attitude towards cryptocurrencies, but recent policy trends indicate that stablecoins are becoming the focus of official attention, especially stablecoins linked to the RMB. This shift stems from a cautious consideration of the global financial landscape. Currently, US dollar stablecoins dominate globally, posing a potential threat to China's influence in the digital finance sector.

Hong Kong, as a Special Administrative Region of China, is playing the role of a "stablecoin laboratory." The Hong Kong authorities have begun allowing compliant enterprises to issue fiat-backed stablecoins, but this process is subject to strict regulation and is primarily aimed at commercial use. This approach enables China to observe and assess the reactions of the stablecoin market without directly taking on risks.

China's interest in stablecoins also reflects concerns about capital flows. Compared to difficult-to-trace cryptocurrencies like Bitcoin, the RMB stablecoin can better achieve regulation and control over the flow of funds. This not only benefits enterprises participating in global digital payments but also ensures that funds circulate within China's financial system, reducing the dominance of the US dollar in the digital asset space.

However, this does not mean that China's attitude towards cryptocurrencies has fully relaxed. Mainstream cryptocurrencies like Bitcoin still face strict restrictions in China. China is cautiously exploring a balanced path, neither fully embracing free cryptocurrencies nor completely rejecting technological innovation.

This strategy reflects China's efforts to seek a balance between control and innovation. By developing stablecoins, China hopes to occupy a place in the digital finance sector while maintaining financial stability. This is a strategic game concerning control and the future landscape of finance.

Overall, China's interest in stablecoins does not stem from an endorsement of cryptocurrencies, but rather aims to maintain the status of the Renminbi, prevent the dominance of dollar-denominated digital assets in the market, and explore a path of innovation within a regulatory framework. In the global digital finance landscape, China is strategically and cautiously positioning itself to ensure its influence in the future financial system.