Offshore yuan-based stablecoins eyed

Expert: Development of global digital assets is evolving into a trend

China may step up efforts to explore offshore renminbi-based stablecoins as recent legislation in China's Hong Kong may provide a legal foundation for such innovations, currency experts said, calling it a move that can enhance the country's role in shaping the evolving global monetary system in the digital era.

A stablecoin is a form of digital currency built on blockchain technology and pegged to fiat currencies or other real-world assets at a designated exchange rate to maintain a stable value.

Huang Yiping, dean of Peking University's National School of Development, said that it is worth exploring the potential of offshore renminbi stablecoins as a means of participating in emerging financial innovations — provided that risks remain under control — as onshore regulations on digital assets remain stringent.