How China Can Address Emerging Challenges in the Stablecoin Surge within the Digital Economy

DOI: https://doi.org/10.62517/jnme.202510403

Author(s)

Yao Sun1, Jun Na2,*

Affiliation(s)

1School of Economics, Sichuan University, Chengdu, Sichuan, China 2School of Business Administration, Baise University, Baise, Guangxi, China *Corresponding Author.

Abstract

The rapid development of stablecoins has emerged as a significant phenomenon in the global financial landscape, propelled by the deep integration of the digital economy and financial technology. This paper examines the market landscape, and developmental trends of stablecoins. It is observed that the proliferation of stablecoins presents potential challenges to the internationalization of the Renminbi (RMB), while also introducing risks associated with currency sovereignty, capital flow regulation, and financial data security. In response to these challenges, it is proposed that China adopt strategic measures such as piloting stablecoins, enhancing the internationalization efforts of the RMB, upgrading the capital regulatory framework, and advancing the development and adoption of central bank digital currencies.

Keywords

Stablecoins; Digital Era; FinTech; Cryptocurrency; E-CNY

References

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