The president of the University of International Business and Economics in China suggests piloting a "Chinese solution" for stablecoins in free trade ...

According to a report by Caijing Magazine on December 21, Zhao Zhongxiu, president of the University of International Business and Economics, and others wrote an article titled "Global Stablecoin Regulation Takes Shape; 'China Solution' Can Be Piloted in Free Trade Zones." The article argues that with stablecoin legislation becoming a reality in many major jurisdictions globally, China should not miss this historic opportunity. To prudently conduct stablecoin-related business and regulation in mainland China, it is recommended to pilot the program in free trade zones (FTZs), such as the Shenzhen Qianhai FTZ and the Hainan FTZ, which are adjacent to Hong Kong. Specific suggestions for piloting in FTZs include: establishing a "Cross-border Financial Technology Laboratory," establishing a stablecoin "whitelist" system, establishing an offshore RMB stablecoin innovation pilot program, promoting digital trade and intellectual property financing, and strengthening blockchain infrastructure construction. Simultaneously, a strict risk prevention and control mechanism should be established, including: strict institutional and individual access, transparent reserve audits, and tracking and controlling compliance arbitrage and capital flow risks.