Offshore RMB Stablecoin: A New Opportunity to Reshape the Global Payment Landscape

The global monetary system is undergoing significant transformation. A new payment revolution around sovereignty, compliance, and efficiency is quietly unfolding.

Recently, at a Web3-related conference held in Shanghai, the founder of a stablecoin project provided a detailed introduction to the practice and development prospects of offshore RMB stablecoins. With the growing demand for cross-border payments and the gradual clarification of regulatory frameworks in various countries, offshore RMB stablecoins are entering a crucial development opportunity period.

From Hong Kong to Central Asia, and then to the countries along the "Belt and Road" initiative, this stablecoin project is building a digital modern Silk Road. This is not only a business innovation but also a strategic layout for the diversification of the global monetary system.

Reflections on Cryptocurrency from the Perspective of Traditional Finance

The founder of the project previously worked at well-known investment banks and private equity funds, possessing nearly twenty years of financial and investment experience. He stated that at the end of 2022 and the beginning of 2023, the team judged that stablecoins could be the next significant opportunity in the cryptocurrency industry. As an "infrastructure" that connects traditional finance with the crypto world, stablecoins have the potential to enhance cross-border payment efficiency and reduce settlement costs. However, compliance issues will be key to whether stablecoins can develop in the long term.

In this context, Hong Kong's policy direction has become an important factor. As an international financial center, Hong Kong has a recognized regulatory environment while leaving considerable space for financial innovation. By the end of 2023, relevant departments in Hong Kong released a consultation document on stablecoin regulation, widely soliciting opinions on issuance mechanisms, reserve management, and licensing requirements, laying a foundation for policy advancement.

From Kazakhstan to Hong Kong: The Practical Journey of Stablecoins

In the context of rapidly changing global regulatory environments, the project has chosen a pragmatic compliance path. In May of this year, Kazakhstan's financial regulatory agency officially approved the project's license to issue offshore renminbi stablecoin, marking the first time the country has issued an official permit related to stablecoins.

This layout is highly aligned with China's "Belt and Road" initiative. Kazakhstan is an important economic and trade cooperation partner for China in Central Asia. In recent years, the annual growth of China-Kazakhstan bilateral trade has remained around 20%-30%, providing a real and continuous application scenario for offshore RMB stablecoin.

As the world's largest offshore renminbi trading center, Hong Kong will be the focal point of the project's long-term strategy. The founders stated that they have maintained close communication with the Hong Kong Monetary Authority and plan to submit a formal stablecoin license application.

Reconstructing Cross-Border Payments: The Advantages of Offshore Renminbi Stablecoins

Compared to the traditional SWIFT system, stablecoins demonstrate significant advantages in cross-border settlement efficiency. SWIFT is essentially an information flow system, where information flow and funds flow are separate. A fund transfer often takes 3-6 days to complete. In contrast, blockchain-based technology architecture allows for nearly instant fund transfers, with settlement speeds reaching seconds, usually confirming within a minute.

Compared to the US dollar stablecoin, the offshore RMB stablecoin better meets the actual needs of Chinese enterprises in their global expansion. Many Chinese companies, while promoting overseas business, still have their cost centers in China. Using US dollars means that they ultimately still need to convert back to offshore RMB, which incurs an additional exchange loss. A stablecoin that directly anchors to offshore RMB can simplify the process and bring substantial cost savings for enterprises.

Era of Multidimensional Stablecoins: New Trends in the Global Landscape

Regarding the global stablecoin landscape, industry insiders believe that the US dollar stablecoin currently dominates, but this singular pattern will not last in the long term. In the future, if sovereign currencies are mapped as stablecoins in some form, the international monetary system is likely to center around several important sovereign currencies, moving towards a multipolar balance structure. The shares of the euro, renminbi, and especially offshore renminbi in the stablecoin market will gradually increase.

This trend has already been reflected at the regulatory level. Economies such as Hong Kong, the United States, the European Union, the United Kingdom, and Singapore have successively incorporated digital currencies into their regulatory frameworks. The improvement of the regulatory framework has cleared obstacles for the growth of non-US dollar stablecoins.

According to statistics, the offshore renminbi currently accounts for about 5% of the SWIFT payment system. If the stablecoin market size reaches 2 trillion USD in the future, the potential space for offshore renminbi stablecoins could be as high as several hundred billion USD.

Conclusion

Digital currencies are reshaping the global financial landscape. Regulatory trends around the world outline a trend of reshuffling the global monetary system. The future is likely to be one of coexistence rather than outright disruption. A market space of "hundreds of billions" is enough to accommodate multiple independent ecosystems that are not tied to the dollar system.

In this global competition centered around technology, regulation, and currency, enterprises targeting international markets are transitioning from mere adaptors of rules to practitioners, participants, and co-builders of innovative solutions. The curtain on the era of multipolar stablecoins may be quietly rising in Hong Kong, this international financial center.