China appears to be softening its long-standing crypto stance again. According to Reuters, Shanghai’s State-owned Assets Supervision and Administration Commission (SASAC) recently convened a meeting attended by dozens of officials to explore strategic responses to stablecoins and digital currencies — a surprising shift given China banned crypto trading and mining in 2021.
At the heart of the pivot are domestic giants like JD.com and Ant Group, which are now lobbying for permission to issue yuan-based stablecoins, beginning in Hong Kong where new stablecoin legislation takes effect on August 1. The companies hope to mitigate U.S. dollar-linked dominance while accelerating yuan internationalization.
Though the People’s Bank of China has historically warned about crypto risks, Shanghai’s regulators are now urging greater sensitivity to emerging technologies and deeper research into blockchain. The move reflects China's largest financial hub testing the waters for regulatory innovation, signaling that previous hardline restrictions may be up for revision.
This isn't hype — it's a calculated repositioning. With Bitcoin nearing $112K and global stablecoin adoption accelerating, Shanghai is preparing to pilot regulatory strategies while national authorities still weigh the risks.
If carefully executed, these steps could pave the way for regulated yuan-pegged digital assets — and mark China’s first real crypto pivot in years.