On July 10, 2025, the Shanghai State-owned Assets Supervision and Administration Commission (SASAC) convened a meeting with 60-70 government officials to debate stablecoins and digital assets. This gathering marks a potential departure from China's historically strict crypto stance, coinciding with Bitcoin's surge past $118,000. Historically, China banned cryptocurrency trading and mining in 2021, making this high-level discussion particularly significant.
The meeting focused on stablecoins like Tether (USDT) and USD Coin (USDC), highlighting their growing role in global cross-border transactions. Officials acknowledged the need for "strategic responses" to digital assets, with Reuters reporting a new "greater sensitivity" toward blockchain technology. Shanghai – China's financial hub with a $729 billion GDP – is being considered as a testing ground for crypto-friendly policies, given its history of financial reform autonomy.
Corporate pressure from Chinese giants JD.com and Ant Group reportedly influenced the discussions. Both companies are seeking approval from the People's Bank of China for yuan-backed stablecoins. The development aligns with global trends, including Switzerland's crypto-friendly laws and $14.4 billion inflows into U.S. Bitcoin ETFs through July 2025.