Scholar: There are no major legal obstacles to issuing a Renminbi stablecoin

Liu Xiaochun, Deputy Dean of the Shanghai New Finance Institute (SFI), published an article pointing out that even if China does not currently issue a Renminbi stablecoin, Renminbi stablecoins both domestically and abroad should be included in regulation, and management measures for Renminbi stablecoins should be introduced as soon as possible. This is necessary to provide matching payment and settlement methods for new transaction scenarios in the development of the digital economy, to meet the needs of exploring new types of cross-border payment methods, and to prevent risks brought about by Renminbi stablecoins issued overseas, so as to protect national financial security. There are no major legal obstacles to issuing Renminbi stablecoins. The regulation of Renminbi stablecoins should adhere to the principle of unified domestic and foreign management, and strict restrictions should be imposed on capital scale, reserve assets, business scope, and other aspects. For the sake of prudence, a sandbox mechanism can be used for pilot projects, and efforts should be made to achieve seamless connection between Renminbi stablecoins and the digital Renminbi and the bank account system, so as to enhance their competitiveness. In addition, close attention should be paid to the spillover risks of the United States' policies on **Bitcoin** and stablecoins.