Stablecoins could present the next battleground in the US-China rivalry.
Beijing appears to be using Hong Kong as a testing ground for cryptocurrencies pegged 1:1 to fiat currencies with new legislation to regulate the coins.
China has long restricted digital currencies, but most stablecoins are tied to the US dollar, and officials in Beijing “do not want to miss an opportunity to influence the next generation of global payments,” The New York Times wrote.
As China looks to further challenge the dominance of the dollar, “the objective here is to stay relevant as a belligerent White House seeks to weaponize its control of the global financial flows,” Bloomberg’s Andy Mukherjee wrote.
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