Economist Says Stablecoins Offer Cross-Border Solutions e-CNY Falls Short Of, Asia Morning Update

China is stepping up its focus on stablecoins to counter U.S. dollar dominance, though capital controls limit the effort to Hong Kong’s offshore renminbi market, where liquidity remains tight.

Dr. Vera Yuen of Hong Kong University’s Business School told CoinDesk that Beijing’s approach is strategic rather than experimental. “CBDCs are mostly for domestic use. For cross-border payments, stablecoins offer better interoperability and international utility,” she said.

The push comes as the U.S. GENIUS Act establishes a framework for dollar-pegged stablecoins, accelerating China’s plans. Evan Auyang, president of Animoca Group, said the law is prompting Beijing to view stablecoins as essential infrastructure for global trade and settlement, rather than speculative assets.

While the e-CNY remains China’s main domestic digital currency, stablecoins are better suited for international use. Offshore issuance will initially be limited to Hong Kong, though thin CNH liquidity constrains broader adoption.

Elsewhere in Asia, Japan is preparing yen-backed stablecoins for domestic circulation, led by Monex, SBI, and JPYC, reflecting a regional push to keep pace with U.S. dollar tokens.

Beijing’s stablecoin initiative appears intended to complement the e-CNY, expanding the yuan’s global reach without loosening domestic control.

Market Snapshot

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