“Dollar Dominance to Stablecoins Is Pushing China to Explore Stablecoins, But Capital Controls Limit The Project to Hong Kong’s Offshore Renminbi Market”, – WRITE: www.coindesk.com
China’s Growing Focus on Stablecoins Is Less about Embracing Crypto and More about defending ITS CURRENCY from US DOLLAR Dominance, Says Dr. Vera Yuen of Hong Kong University’s Business School, Who Argues The Shift Highlights Offshore Opportunities But Also Deep Domestic Limits.
Beijing’s Shift ComESS as Washington Moved First to Create a Regulatory Framework for the Stablecoin Industry in the US Reuters Recently Reported that China’s State Council is Reviewing. Later this month, with Hong Kong and Shanghai Expectioned to Fast-Track Adoption.
In an Earlier Interview, Animoca Group President Evan Auyang Told Coindesk The Trigger Was The Us Genius Act, WHICH CEMENTS DOLLAR-PEGGED TOKENS AS Part of Global Finance.
He Said the Law Is “Pressuring China to Act A Lot Faster,” Pushing Beijing to Consider Stablecoins Not As Specialty Instruments, As Once Described by the Nes) to keep pace in Global Trade and Settlement.
Yuen Said the Government First Prioritized The E-Cny, ITS Central Bank Digital Currency, Because It Offered Control, Traceability, And Seigniorage Profits-Fet. Privately Issued tokens. But She Noted that Stablecoins have a Clear Edge in International Use.
“Many Cbdcs Are Developed for Domestic Use, SO for International Use of Cbdcs, There Is a Big Problem of Interoperability of Different Systems. Option for Cross-Border Transactions, ”She Told Coindesk.
“FCUSING ON STABLECOins China to Respond Proactiely to Global Regulatory Debates and Technological Advances, Ensuring It Remains Competitive and Prepared as The Digital, ENSURING IT REMAINS Continued.
Capital Controls Still Mean Any Yuan token Will Stay Offshore, with Hong Kong’s New Regime Providing the Testing Ground. However, Limited CNH Liquidity Underscores How Narrow The Runway Is for China’s Internationalization Push.
“This would Limit the Issuance of Offshore Renminbi Stablecoins, Constraining Its Attractiveness As A Means of Payment,” Yuen Said.
China is Also Not Moving in Isalation.
In Japan, Monex Group Is Preparing to Issue A Yen-Backed Stablecoin Tied to Government Bonds, Joinging Other Domestic Players Such As SBI and Jpic.
Unlike China, However, Where Capital Controls Push Experimation Offshore, Japan’s Regulators Are Laying The GROUNDWORK FOR STABLECOINS TO Circulate at Home, Sigering Asia’s Brodaling Asia’s BroundCulate at Home dollar tokens.
For Now, Beijing’s Stablecoin Experiment Looks Like Like A Replacement for the E-Cny and More Like A Cautioous Complement, A Way to Extend The Yuan’s Reach Abroad Laos.
Market MovementsBTC: BTC HELD AT $ 111K As Nvidia Posted Strong Earnings.
Eth: ETH IS Trading AT $ 4,500, and History Shows that a Green August of Fethen Precedes a 60% Year-End Rally, Thought Typically After A September Dip.
GOLD: Gold Traded Wednesday at $ 3,443 per OUNCE, UP 1.6% from Tuesday’s Close, Extending A 37% Year-Over-Year Rally, Thought Prices Slipped In Early Trading feud.
S&P 500: The S&P 500 Rose 0.2% Wednesday, Pushing Wall Street to A New All-Time High Ahead of Nvidia’s Earnings.
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Bitcoin and Other Cryptos Showed Some Valativity, But Were Mostly Flat in the Minutes Following the Report.
- NVIDIA REPORTED Second-Quarter Earnings Ahead of Expectations with Revenue Up 56% from A Year Earlier.
- Shares of the Chipmaker Were Lower by 1.7% in after Hours Trading, While Ai-Linked Crypto Tokens Stayed Flat.
- Bitcoin, Ether and Xrp Were Showing Some Valativity Following the Report, But Little Net Movement.
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