China Considers Strategic Shift Toward Crypto and Stablecoins

China may be on the verge of a significant crypto policy shift, according to a new Reuters report. The State-owned Assets Supervision and Administration Commission (SASAC) in Shanghai recently convened dozens of government officials to explore "strategic responses" to digital assets, including stablecoins—despite the country's official ban on cryptocurrency trading and mining.

The closed-door meeting signals a potential softening in tone, with officials reportedly showing increased openness to emerging technologies. This could pave the way for future crypto experimentation, especially in Shanghai, China’s financial powerhouse with a GDP of $729 billion. The city is frequently used as a testing ground for financial reforms and may become central to any pivot toward digital assets.

Driving this potential shift is growing pressure from major Chinese tech firms like JD.com and Ant Group. These companies are reportedly pushing for regulatory approval of yuan-pegged stablecoins by the People’s Bank of China (PBoC). If granted, such approvals would mark a pivotal moment for China’s stance on blockchain-based finance.

External factors are also influencing this reconsideration. The rapid adoption of crypto assets and stablecoins in the United States has created competitive pressure on China, which has so far rejected digital assets in favor of its centrally controlled digital yuan (e-CNY).

While no official policy change has been announced, the meeting marks a major development and may hint at a future where China selectively engages with crypto technologies. As global momentum builds around stablecoins and digital asset infrastructure, even historically resistant governments like China may find it difficult to remain on the sidelines.