A Shanghai regulator held a meeting to discuss stablecoins and digital currencies, a shift in China’s stance on crypto trading. Calls for a yuan-pegged stablecoin have been made by experts and companies. Shanghai leads regulatory changes and aims to shape blockchain-based payments globally, with potential to rival Visa’s transaction value.

Blockchain-based stablecoins have gained momentum globally, with transaction value estimated at $15.6 trillion in 2021, surpassing Visa. Companies in the U.S. like Amazon and Walmart are exploring stablecoin launches. South Korea plans to allow won-based stablecoins. JD.com and Ant Group urge China’s central bank for yuan-based stablecoins.

Hurdles exist for stablecoins in China due to capital controls. Expert suggest issuing stablecoins in Shanghai and Hong Kong simultaneously. China faces challenges in regulating digital currencies. Mainland China banned cryptocurrency trading and mining in 2021. Debate over stablecoins in China heats up while non-stablecoin digital currencies gain popularity worldwide.

Read more at Yahoo Finance: In big shift, Shanghai regulator mulls policy responses to stablecoins and cryptocurrencies