Zhu Guangyao: Suggest incorporating the RMB stablecoin into the top-level planning of the national financial strategy

According to a report by Golden Finance, former Deputy Minister of Finance Zhu Guangyao shared his observations on the recent developments of stablecoins at the closed door seminar of the New Economist think tank "The Future of Stablecoins", interpreted the adjustment of the US stablecoin policy, and proposed a macro level policy path for China to respond to stablecoins after analyzing relevant data. Regarding how stablecoins pegged to fiat currencies can affect the international monetary system and financial order, Zhu Guangyao stated that stablecoins pegged to the US dollar will initiate the third phase of the Bretton Woods system. Regarding the question of what strategy China should adopt to deal with stablecoins, Zhu Guangyao believes that it can be promoted from three aspects. Firstly, we should fully utilize the offshore market of the Hong Kong Special Administrative Region as a pioneer. The Hong Kong Stablecoins Ordinance will officially come into effect on August 1st this year. As China's external window, Hong Kong provides a key platform for implementing relevant measures. We must fully recognize and leverage Hong Kong's role, strengthen policy communication between financial regulatory authorities in mainland China and Hong Kong, and firmly grasp this valuable window of opportunity. Secondly, the core strategy of stablecoins must revolve around the Chinese yuan. Both offshore and onshore Renminbi need to promote the establishment of a stablecoin pegged to the Renminbi. While supporting the banking system in Hong Kong, it is necessary to incorporate the RMB stablecoin into the upper level design of the national financial strategy for overall planning. Thirdly, it is necessary to closely observe the global usage of stablecoins pegged to fiat currencies, especially in the following three aspects. Firstly, it is necessary to closely monitor the implementation of the stablecoin bill once it becomes law on August 1st, as stated by Trump; Secondly, it is necessary to monitor the promotion of stablecoins linked to fiat currencies in different regions and countries; Finally, it is necessary to observe the role played by national governments, regulatory agencies, and commercial institutions in the issuance of stablecoins linked to fiat currencies.