Former Bank VP Wang Yongli Shares Insights on China’s Crypto Strategy

Should China stay with the development of its own RMB stablecoin, or go further? Will more explicit rules and accelerated bank integration alter the crypto future of finance in the country? Former Vice President of the Bank of China Wang Yongli thinks the responses are focusing on regulations and building Real-World Assets (RWA). The article given below will elaborate on Wang Yongli's words on China's Crypto strategy.

What's the News

Wang Yongli, the former Deputy Governor of the Bank of China, has just been released discussing the future of the digital finance and cryptocurrency industry in China. He added the country must not focus on the creation of an RMB stablecoin, which, according to him, has limited potential.

Rather, he highlighted that the process of legislation of stablecoins and crypto assets in China enables banks to be active participants, and encourages quicker creation of Real-World Assets (RWAs). He said that this would assist China in skipping the global financial technology race and making sure that its digital economy remains competitive with the other major economies, such as the United States.

Source: Wu Blockchain X

Wang Yongli’s Words on Crypto and the Digital World

Wang Yongli emphasized that digital finance cannot be focused on an RMB stablecoin. He observed that the possibility of such a coin is minimal in the greater possibilities of crypto laws and tokenization of assets. He commended the United States for being at the forefront in enacting stablecoin laws, saying it was one of the biggest moves to legitimize the industry.

He reckons that such actions in the nation might lead to huge involvement by banks and financial institutions. Rather than focusing on China's ban on crypto , the nation must focus on clear laws and regulations related to cryptocurrency to convert traditional financial assets into blockchain-based Real-World Assets.

Highlighting the Four Key Areas of Focus of the Former Vice President of the Bank of China, Wang Yongli, are as follows:

Wang believed that any financial system is based on legal clarity . The country can eliminate the existing ambiguities by passing laws concerning stablecoins and crypto assets. The laws would give confidence to work in a safe and controlled environment.

The second important aspect was that banks had to move fast into the crypto and blockchain markets. Banks are trusted players and thus can offer stability and confidence to the system. Their presence would help facilitate an easier transition

Wang says the actual breakthrough is RWAs . Financial products can be traded on-chain by tokenizing assets like bonds, loans, or securities to become more efficient, transparent, and accessible.  The move would introduce trillions of dollars of standardized assets into the blockchain economy. However, as per Robert Kiyosaki, Bonds are not safe .

Wang is of the view that China has an opportunity to beat the competition in the right direction. Although the range of RMB stablecoins is narrow, the broader initiative to advance legislation, bank involvement, and RWA might make the country a step ahead of the rest.

Impact if Implemented

With the implementation of the vision of Wang Yongli, the financial markets might experience a fast transformation. Clarity in legislation would encourage national and international involvement, and banks would provide credibility and volume to blockchain integration. The tokenized physical assets would open up enormous investment and trading opportunities, and liquidity would be increased dramatically.

Finally, the nation may become a leader in global digital finance, competing with the United States directly and potentially outperforming it in the development of a huge, regulated blockchain-based financial system.

Conclusion

The views of Wang Yongli present a strategic map of digital finance. He asks policymakers to think big instead of concentrating on small-scale projects of stablecoins. Former Vice Presidents' of Bank words could impact the market if implemented. However, with the recent US Trump Tariff on China could be 200% it may impact China's Crypto Strategy suggested by Wang.