Why has China recently started paying attention to stablecoins? Threat of US dollar stablecoins: The United States is promoting the compliance of US dollar stablecoins, accounting for 99% of the market, with a transaction volume of $28 trillion by 2024, strengthening the dominant position of the US dollar in global payments. If China ignores it, it may fall behind in the competition of digital finance. The central bank's policy shift: After the ban on cryptocurrencies in 2021, the central bank governor Pan Gongsheng proposed in 2025 that digital RMB and stablecoins can replace traditional cross-border payments to solve the problems of low efficiency and geopolitical risks. Limitations of digital RMB: The pilot of digital RMB has exceeded 100 billion yuan but is limited to domestic use, and stablecoins can supplement its cross-border settlement function. Strategic role of Hong Kong: The Hong Kong Stablecoins Ordinance will come into effect in August 2025, taking the lead in promoting US dollar and Hong Kong dollar stablecoins, and then promoting offshore RMB stablecoins, using a 1 trillion RMB liquidity pool to test cross-border settlements. Challenge of RMB internationalization: The share of RMB reserves will decrease to 2.2% by 2024, affected by debt, deflation, and demographic issues. Stablecoins can improve cross-border payment efficiency, but they need to overcome the dominance of the US dollar and regulatory restrictions. Summary: China pays attention to stablecoins to cope with the digital financial advantages of the US dollar and promote the internationalization of the Chinese yuan. The pilot of offshore RMB stablecoin in Hong Kong is crucial, but balancing regulation and innovation to enhance global confidence is a long-term challenge.