The Shanghai State-owned Assets Supervision and Administration Commission focuses on Crypto Assets and stablecoins: How can state-owned enterprises lead the new wave of the digital economy?

In the wave of the global digital economy, the development of Crypto Assets and stablecoins is profoundly affecting the financial landscape. As a major economic hub in China, Shanghai's attitude towards this emerging trend is under close follow. On July 10, the Party Committee of the Shanghai State-owned Assets Supervision and Administration Commission held a central group study meeting, delving into the development trends and response strategies of Crypto Assets and stablecoins. This not only demonstrates Shanghai's keen perception of emerging technologies but also signifies that state-owned enterprises will play a more crucial role in promoting the deep integration of technology, finance, and industry, as well as supporting Shanghai's construction of the "Five Centers".

1. Strategic Layout of the Shanghai State-owned Assets Supervision and Administration Commission: Keen Perception and Depth Exploration

The learning session was hosted and addressed by He Qing, Secretary of the Party Committee and Director of the Shanghai Municipal State-owned Assets Supervision and Administration Commission. The meeting invited Li Mingliang, Chief of the Policy Group at Guotai Junan Securities Policy and Industry Research Institute, to give a special guidance report, detailing the development history and characteristics of Crypto Assets and stablecoins. He explained the development strategies and regulatory systems of stablecoins in various regions around the world, analyzed the opportunities and challenges faced by the development of stablecoins, and provided specific suggestions for the development of digital currency.

Director He Qing emphasized several key aspects in his speech:

Adhere to innovation-driven: Maintain a keen perception of emerging technologies and strengthen research and exploration of digital currency. This indicates that the Shanghai State-owned Assets Supervision and Administration Commission realizes that in the face of the rapidly changing digital era, it must actively embrace innovation and gain an in-depth understanding of the essence of blockchain and digital currency.

Persist in the integration of production and data: Explore the application of blockchain technology in areas such as cross-border trade, supply chain finance, and asset digitization. This signifies that state-owned enterprises in Shanghai will actively explore practical application scenarios of blockchain technology, deeply integrating digital technology with the real industry to enhance industrial efficiency and competitiveness.

Persist in striving for progress: Enhance the ability of strategic agility and strategic initiative, further promote the deep integration of technology, finance, and industry, better leverage the important role of state-owned assets and enterprises in technological innovation, industry control, and security support, and make new and greater contributions to the construction of Shanghai's "five centers". This showcases the ambition of the Shanghai State-owned Assets Supervision and Administration Commission in the era of digital economy, hoping to consolidate Shanghai's position in finance, trade, shipping, technological innovation, and as an economic center through the leading role of state-owned enterprises.

II. The Development Path of the Renminbi Stablecoin: Domestic and International Interaction and Regulatory Leadership

In the context of this study session, domestic media reported the suggestions of Yang Tao, Deputy Director of the National Financial and Development Laboratory, providing specific ideas for the development of the Renminbi stablecoin. Yang Tao suggested in his article that the development of the Renminbi stablecoin should adopt a "domestic offshore + overseas offshore" linkage model, coordinating the pilot exploration of the domestic Shanghai Free Trade Zone and the overseas Hong Kong market.

The core of this proposal is:

Centralized Regulation Dominance: Emphasizes that the RMB stablecoin should be led by centralized regulation to ensure its development remains within controllable limits.

Combination of wholesale and retail, on-chain issuance: Building a mechanism for issuance that combines wholesale and retail, based on blockchain technology.

"Electronic Fence" Compliance: Achieve compliance management similar to an "electronic fence" through technological means, ensuring the traceability and compliance of fund flows.

CNYC and CNHC Dual Currency System: It is recommended to establish a dual currency system of CNYC (onshore offshore RMB stablecoin) and CNHC (offshore RMB stablecoin) to support cross-border payments, RWA (Real World Assets) settlement, and the internationalization of the RMB.

Strict Risk Control and Legal Framework: Emphasize the need to strictly control risks and accelerate the construction of relevant legal frameworks to provide legal guarantees for the healthy development of the renminbi stablecoin.

This proposal demonstrates China's cautious and pragmatic approach to promoting the internationalization of the digital renminbi and the development of stablecoins, hoping to gradually explore the application scenarios of digital currencies while ensuring financial stability.

Conclusion:

The Shanghai Municipal State-owned Assets Supervision and Administration Commission's recent study session on Crypto Assets and stablecoins is not only an active response to emerging technological trends but also a strategic embodiment of Shanghai's pursuit of new development in the digital economy era. Through the role of state-owned enterprises in technological innovation, industry control, and security support, Shanghai hopes to seize the initiative in the field of digital currency and deeply integrate blockchain technology into the real economy. The development path of the Renminbi stablecoin also demonstrates China's prudent advancement in the field of digital finance. All of this will inject new momentum into Shanghai's "five centers" construction and have a profound impact on the global digital financial landscape.