Animoca Exec: U.S. Regulatory Heat Accelerates China’s Digital Yuan Momentum — Asia Briefing

China is shifting its stance on stablecoins, once considered a threat to financial stability, as U.S.-backed digital dollar tokens expand their influence across Asia.

Back in 2021, the People’s Bank of China (PBOC) issued stern warnings about the risks of global stablecoins, citing potential disruption to monetary policy and cross-border capital controls. That caution was largely aimed at private-sector initiatives like Facebook’s failed Libra project. But fast forward to today, and dollar-pegged stablecoins such as USDT and USDC are deeply integrated into Asian financial systems—particularly in trade and supply chain finance.

Now, Beijing is re-evaluating its position.

“Stablecoins are making a comeback for policymakers,” said Evan Auyang, president of Hong Kong-based Animoca Group. “And China is feeling the pressure to move faster—especially as the U.S. advances its regulatory lead.”

GENIUS Act Raises Stakes

The catalyst? The recent passage of the U.S. GENIUS Act, which for the first time offers comprehensive federal guidance on fiat-backed stablecoins. The legislation is widely viewed as a major step in legitimizing the digital dollar globally, giving it a clear regulatory foundation.

According to Auyang, this move has increased urgency in China. “The U.S. is cementing stablecoins as part of its economic strategy,” he said. “China views this as an extension of dollar dominance in the digital era—and it doesn’t want to be left behind.”

China’s Stablecoin Pivot

Animoca is working with Standard Chartered and Hong Kong Telecom on a stablecoin tied to the Hong Kong dollar (HKD), but Auyang said Beijing is also exploring offshore yuan (CNH) stablecoins. These could allow cross-border RMB settlement without compromising the country’s strict capital controls.

“If China wants to internationalize the RMB in a controlled way, the CNH stablecoin is the right vehicle,” he explained.

Unlike the central bank’s digital yuan (e-CNY), which remains largely institutional, these regulated offshore stablecoins could connect Chinese assets to global public blockchains—building new financial infrastructure with strategic value.

New Digital Financial Architecture

The shift marks a dramatic change in tone from the PBOC’s 2021 white paper, which lumped stablecoins in with speculative crypto assets. Now, Chinese policymakers appear to recognize that stablecoins could serve as essential tools for boosting the yuan’s global use.

Hong Kong is expected to play a key role. Its independent legal framework and financial openness make it a natural sandbox for piloting CNH and HKD-denominated stablecoins. Liquidity pools in the city could help bridge stablecoin transactions with tokenized Chinese assets.

“Eventually, even B2B payments will move to stablecoins instead of central bank digital currencies,” Auyang said. “They offer more flexibility and broader adoption.”

Global Trend Taking Hold

China isn’t alone. Auyang believes the GENIUS Act will spark a global wave of regulated stablecoin development.

“Every country is going to follow suit,” he said. “Not to compete with the dollar directly—but to ensure they have their own presence in this evolving financial system.”

While the dollar’s dominance is unlikely to disappear, non-USD stablecoins are becoming viable alternatives in regional trade, especially in Southeast Asia.

“The dollar isn’t going away,” Auyang added. “But countries will want options—and stablecoins offer exactly that.”

Market Update

• Bitcoin (BTC): Consolidating at $118,000 after last week’s $123,000 high. A dip to $115,000 remains possible, though on-chain data suggests bullish momentum could resume.
• Ethereum (ETH): Trading at $3,619, ETH remains in an uptrend with support at $3,300.
• Gold: Down 0.6% to $3,410.26 following a U.S.-Japan trade agreement that eased investor demand for safe havens.
• Nikkei 225: Rose 1.09% as trade optimism lifted Asia-Pacific equities.
• S&P 500: Gained 0.75% on Wednesday, led by renewed optimism over global trade ties.