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China is facing increasing pressure to accept stablecoins.
China is under pressure from economists and policy advisors to consider the use of stablecoins for cross-border payments, amid America's strengthening of the dollar's position through cryptocurrency innovations. While still maintaining a ban on cryptocurrencies, PBOC officials have acknowledged that stablecoins could "revolutionize international finance." Hong Kong is seen as a testing ground for stablecoins linked to the yuan, with several large companies preparing to apply for licenses.
China needs to accept sovereign currency encryption to maintain competitiveness. While current digital currency efforts face challenges, experts recommend a parallel strategy that combines traditional efforts and Hong Kong's capabilities to promote stablecoin.