According to a Friday report by Reuters, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), a Shanghai regulator, recently held a meeting with dozens of government officials in order to consider "strategic responses" to digital assets, including stablecoins.
The report underscored the significance of such a "major" development, given that both crypto trading and mining are officially banned in China.
The officials are reportedly open to showing "greater sensitivity" to bleeding-edge technology, which marks a significant change in tone.
Shanghai, the country's main financial hub with a nominal gross domestic product of $729 billion, could potentially become a testing ground for crypto-friendly policies. The central government often gives the megacity more freedom when it comes to implementing financial reforms.
Corporate pressure might play a major role in any potential policy shift. Chinese giants JD.com and Ant Group are reportedly aiming for the approval of yuan-backed stablecoins by the People's Bank of China (PBoC).
The U.S.'s swift embrace of crypto is also putting more pressure on China, which has so far completely rejected the nascent asset class.
As reported by U.Today, Wyoming Senator Cynthia Lummis, an ardent Bitcoin supporter, previously predicted that there could be a cryptocurrency "arms race" between the U.S. and China.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team