Exploring How Stablecoins Support Foreign Trade: Shanghai and Wuxi Actively Research, Related Concept Stocks Strengthen, Risks Cannot Be Ignored

On July 11, the Party Committee of the Shanghai State-owned Assets Supervision and Administration Commission held a study meeting for the central group, focusing on the development trends and response strategies of cryptocurrencies and stablecoins. This move has attracted market attention, with A-share digital currency and blockchain concept stocks continuing to rise in the afternoon of the same day. Previously, Wuxi also held a special meeting proposing to explore the application path of stablecoins in foreign trade development. These trends may be a response to the speech made by the central bank governor Pan Gongsheng at the Lujiazui Forum in June this year.

On the same day, the price of Bitcoin reached a new high. Data from a trading platform shows that BTC broke through $118,000, reaching $118,050 per coin, with a daily increase of 5.96%.

At the study meeting, He Qing, Secretary of the Party Committee and Director of the Shanghai State-owned Assets Supervision and Administration Commission, emphasized the need to fully implement the spirit of the 7th Plenary Session of the 12th Municipal Party Committee, maintain a keen awareness of emerging technologies, and strengthen research and exploration on digital currency. He proposed to explore the application of blockchain technology in areas such as cross-border trade, supply chain finance, and asset digitization, promote the deep integration of technology, finance, and industry, and make greater contributions to the construction of Shanghai's "five centers".

This move coincides with the upcoming implementation of the Hong Kong 'Stablecoin Regulation' on August 1. Hong Kong stock stablecoin concept stocks surged in response, with several related companies' stock prices significantly rising. Following this, A-share digital currency and blockchain concept stocks continued to strengthen in the afternoon, with many individual stocks showing significant increases.

The trend of compliance for stablecoins is becoming increasingly evident globally. At a recent special meeting on key reform tasks convened by the Wuxi Municipal Committee, the exploration of practical paths for stablecoin empowerment in foreign trade development was also mentioned. In addition, some enterprises have reached a preliminary cooperation intention with the Yanji Municipal People's Government regarding possible digital economy-related businesses in Hong Kong.

Regarding the development of the RMB stablecoin, some think tanks have put forward suggestions. Experts recommend adopting a "domestic offshore + foreign offshore" linkage model, coordinating the pilot exploration of the domestic Shanghai Free Trade Zone and the foreign Hong Kong market. At the same time, it is suggested to establish a dual currency system of CNYC (domestic offshore RMB stablecoin) and CNHC (foreign offshore RMB stablecoin) to support cross-border payments, RWA settlements, and the internationalization of the RMB.

However, the rapid development of stablecoins has also raised market awareness of risks. Recently, some illegal platforms claiming to be stablecoin-related have encountered problems, attracting significant attention from regulatory authorities. Cities like Shenzhen and Beijing have successively issued risk warnings, advising the public to be vigilant against illegal fundraising activities conducted under the guise of stablecoins.

Overall, as cities like Shanghai and Wuxi accelerate the exploration of stablecoin applications, the application prospects of digital currency and blockchain technology in China are gradually emerging. However, in this innovative field, it is also necessary to remain vigilant about potential risks and implement effective regulatory measures to ensure the healthy development of the market.